The numbers surprised economists, who had expected the economy to add about 20,000 jobs during the month. The services sector lost 76,000 jobs during the month, erasing gains seen earlier in the year. These job losses were partially offset by a gain of 33,000 jobs in goods-producing industries. The largest decline in employment was in retail trade, which lost 58,000 jobs. “Data in the coming months will shed light on whether employment in this industry may be affected by any changing consumer attitudes related to inflation and the ability of Canadians to meet day-to-day spending,” StatsCan said. Despite the decline, the unemployment rate fell to a record low of 4.9 percent as fewer people sought work. The number of people now officially considered unemployed has dropped to one million across Canada. Long-term unemployment, which the data agency defines as people who have been out of work for at least six months, fell to 185,000. This is the same level as before the pandemic. Despite the major job losses, wage growth accelerated, with average hourly wages rising to $31.24. That’s up 5.2 percent from the average wage this time last year, the fastest annual increase in average wages since 1998. However, it is still less than the official inflation rate of 7.7%. Stephen Brown, an economist at Capital Economics, said that while the numbers came as a surprise, they are unlikely to change the Bank of Canada’s mind when it comes to raising interest rates. “With seasonal distortions likely to explain the decline in employment, the Bank is likely to focus more on increased labor market tightness and the associated recovery in wage growth,” Brown said.
title: “Canada Unexpectedly Lost 43 000 Jobs Last Month " ShowToc: true date: “2022-11-20” author: “Helen Allred”
The numbers surprised economists, who had expected the economy to add about 20,000 jobs during the month. The services sector lost 76,000 jobs during the month, erasing gains seen earlier in the year. These job losses were partially offset by a gain of 33,000 jobs in goods-producing industries. The largest decline in employment was in retail trade, which lost 58,000 jobs. “Data in the coming months will shed light on whether employment in this industry may be affected by any changing consumer attitudes related to inflation and the ability of Canadians to meet day-to-day spending,” StatsCan said. Despite the decline, the unemployment rate fell to a record low of 4.9 percent as fewer people sought work. The number of people now officially considered unemployed has dropped to one million across Canada. Long-term unemployment, which the data agency defines as people who have been out of work for at least six months, fell to 185,000. This is the same level as before the pandemic. Despite the major job losses, wage growth accelerated, with average hourly wages rising to $31.24. That’s up 5.2 percent from the average wage this time last year, the fastest annual increase in average wages since 1998. However, it is still less than the official inflation rate of 7.7%. Stephen Brown, an economist at Capital Economics, said that while the numbers came as a surprise, they are unlikely to change the Bank of Canada’s mind when it comes to raising interest rates. “With seasonal distortions likely to explain the decline in employment, the Bank is likely to focus more on increased labor market tightness and the associated recovery in wage growth,” Brown said.
