Canada Jobs Unexpectedly Fall 2,600, Led by Transport
Canada unexpectedly lost jobs in December, led by transportation and public administration, keeping the jobless rate close to the highest in more than a decade.
Employment fell by 2,600 last month, after a November gain of 79,100, Statistics Canada said today in Ottawa. The unemployment rate was unchanged at 8.5 percent, close to an 11- 1/2 year high of 8.7 percent set in August. The median forecast of 22 economists surveyed by Bloomberg was for a 20,000 gain in employment and an unchanged jobless rate.
The country lost 239,700 jobs last year, the first decline since 1992, and 323,400 jobs since employment peaked in October 2008. Prime Minister Stephen Harper told reporters today he is “disappointed” by the report. The country’s first recession since 1992 ended in the third quarter last year, and the Bank of Canada has pledged to keep its key lending rate at a record low 0.25 percent through June to sustain demand.
The decline of 274,600 jobs in goods-producing industries in 2009 was only partly offset by a gain of 34,900 in service industries.
Setting the Stage
“I would still look past” the job decline, Derek Holt, economist at Scotia Capital in Toronto, said in a telephone interview. “It’s largely just volatility before we set the stage for sustained job growth going into 2010.” Government stimulus packages around the world should have their maximum effect this year, boosting demand, Holt said.
The Canadian dollar appreciated 0.4 percent to C$1.0309 per U fast payday loans.S. dollar at 3:48 p.m. in Toronto, compared with C$1.0347 yesterday.
Full-time employment fell by 2,400 in December, while part- time jobs decreased by about 200, Statistics Canada said. Transportation and warehousing companies fired 23,900 workers, and public administration employment fell by 21,600. Health care jobs rose by 35,300.
Linamar Corp. said Dec. 3 it will close a plant with 134 workers in Batawa, Ontario. The Guelph, Ontario-based company manufacturers automobile parts. Manufacturers eliminated 9,700 jobs in December and 190,800 in 2009, or four out of every five jobs lost nationwide.
Average hourly wage growth accelerated to 2.4 percent in December from a year ago, Statistics Canada said, compared with 2.3 percent in the previous month, the slowest since March 2007.
“Even with the setback, it’s looking increasingly likely that August marked the peak in the unemployment rate,” said Doug Porter, deputy chief economist with BMO Capital Markets in Toronto. “Compared to past recessions, that’s a very mild peak. It’s way below the 13 percent we hit in 1982.”
Canada’s unemployment rate is 1.5 percentage points less than the 10 percent mark reported by the U.S. today, along with an unexpected job loss of 85,000. Over the last three decades, Canada’s unemployment rate has been on average 2.5 percentage points higher than the U.S. rate.
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