Canada Sees Unemployment Rate Rise To 6.8%
Canada’s labor market displayed a complex picture in November, with employment rising but unemployment also increasing as more people entered the workforce. Statistics Canada reported a net gain of 51,000 jobs (+0.2%) last month, primarily driven by full-time positions, while the unemployment rate climbed to 6.8%, its highest level since January 2017, excluding pandemic years.
The public sector led job growth, adding 45,000 positions (+1.0%), while private sector employment remained relatively stable. Key industries contributing to the employment increase included wholesale and retail trade (+39,000), construction (+18,000), and professional, scientific and technical services (+17,000). However, manufacturing saw a significant decline of 29,000 jobs, with Ontario bearing the brunt of these losses.
Regionally, Alberta and Quebec accounted for the majority of job gains, adding 24,000 and 22,000 positions respectively. Ontario, despite little change in overall employment, saw its unemployment rate jump to 7.6%, the highest since May 2014.
The labor force participation rate rebounded to 65.1%, offsetting previous declines, as more Canadians actively sought work. This influx of job seekers contributed to the rising unemployment rate, with the number of unemployed individuals increasing by 87,000 to 1.5 million.
Wage growth moderated, with average hourly earnings rising 4.1% year-over-year to $35.68, down from 4.9% growth in October.
Information for this story was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
