Canada’s unemployment rate jumped 0.3 percentage points to an eight-year high of 6.8 percent in November as more people looked for work, the national statistical agency said Friday.
Excluding 2020 and 2021, when lockdowns to slow the spread of Covid-19 dramatically affected work, this was the highest level since January 2017, Statistics Canada said.
Following little change in October, employment increased by 51,000 in the month. Gains were mostly in full-time work, and almost all in the public sector, it said.
Economists played down the relatively big jump in the jobless rate, noting that a massive increase in the labor force, rather than outright job losses, was responsible for the hike.
“Even with the messiness of today’s employment report, the economy continues to add jobs, reinforcing our view that the labor market is on solid foundations,” TD Economics analyst James Orlando said in a research note.
He and other analysts said they continue to expect the Bank of Canada next week to cut its key lending rate by at least 25 basis points, following a larger reduction in October.
Canada had held its benchmark rate steady for almost a year at 5.0 percent, the highest level in two decades, before initiating cuts in early June.
It was the first country among the Group of Seven advanced economies to begin trimming rates after a protracted period of inflation triggered largely by the pandemic.
Canada’s last cut dropped the rate to 3.75 percent.
According to Statistics Canada, November employment rose in wholesale and retail trade; construction; professional, scientific and technical services; educational services, and accommodation and food services.
It declined in manufacturing, transportation and warehousing, and natural resources.
Credit: Vanguard
