MNI DATA REACT: Canada Nov. Jobs -71.2k, Most Since 2009

--Unemployment Rate Also Rises Most Since 2009 Recession

By Greg Quinn

     OTTAWA (MNI) - Canada's job market weakened sharply in November with the

biggest drop in employment since 2009 during the country's last recession, and

the unemployment rate bouncing from near-record lows.

     Employment dropped by 71,200, Statistics Canada reported Friday from

Ottawa. The MNI economist median called for an increase of 7,500 on the month. 

     The jobless rate rose to 5.9% from 5.5%, the highest since August 2018, and

moving it further away from a record low of 5.4% earlier this year.

     Manufacturing work dropped by 27,500 in November, adding to the October

decline of 23,100. Public administration lost 24,900 and the accommodation and

food service industry fell by 11,000. Overall job declines were split between

full-time and part-time work.

     Canada until now had shown resilience against the pressures of a global

trade war, allowing the BOC to argue it could maintain the G7's highest policy

interest rate. The central bank has said it anticipated a patch of slow growth

in the third quarter but that the weakness would be temporary, in part because

of strong job growth. 

     Today's report didn't suggest the factory job losses are temporary ones

linked to the GM autoworkers strike this fall. 

     One bright spot is that wage growth remains firm, with hourly wages gaining

4.5% in November from a year earlier, more than double the BOC's 2% target for

inflation. 

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

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