Unemployment dropped to 6.5% instead of the projected 7% – economists were wrong
This is reported by Finway
The Canadian labor market surprised on December 5: the country added 53,600 jobs in November, while economists expected a loss of 2,500 positions. Unemployment plummeted to 6.5% – the lowest since July 2024. This is despite the trade war with the U.S., which is paralyzing key sectors.
Three Months of Growth
Statistics Canada reports: from September to November, over 180,000 jobs were created. The strongest three-month period in a year. The country has reversed the trend against all expectations.
Leaders of November:
- Healthcare and Social Assistance: +46,000 positions.
- Youths aged 15-24: unemployment fell to 12.8% (from a peak of 14.7%).
- Alberta: +29,000 for the month, +105,000 for the year.
- Private Sector: the main driver.
Although the U.S. has imposed tariffs, the economy should be slowing – but the statistics scream the opposite. The Canadian dollar jumped by 0.4% to C$1.3906 – the highest since October 29. Bond yields soared by 7 basis points.
The details are less optimistic: most positions are part-time. GDP grew by 2.6%, but household consumption fell by 0.4%, indicating a decline in domestic demand.
As is known, Canada is a top destination for emigration for Ukrainians after 2022. The increase in employment is a positive signal for those planning to move. Healthcare, which has the most openings, is traditionally open to foreigners.
A nuance: 73.6% of Canadian workers feel less secure than two years ago. This is most pronounced in the public sector and export industries.
When Will the Central Bank Stop
The Bank of Canada will keep the rate at 2.25% next week. Governor Macklem: “Rates are at the right level”. A strong labor market allows for a cautious approach to stimulus.
Wages increased by 4%, hours worked by 1.2% over the year.
Canada demonstrates: even under tariff pressure, the labor market can withstand the blow. For the Ukrainian diaspora, this means that the doors to the Canadian market are still open.