Job growth beats estimates but slows before new lockdowns
Canada added more jobs than expected in November, Statistics Canada data showed on Friday, though the pace of growth slowed and the numbers reflect labour conditions before more lockdowns were imposed later in the month.
Canada added 62,100 jobs in November and the unemployment rate fell to 8.5 per cent, beating analyst predictions of a gain of 20,000 jobs and for the jobless rate to remain at 8.9 per cent. Employment remains about three per cent below pre-pandemic levels.
“Canada's labour market continued to outrun COVID in November,” said Royce Mendes, senior economist at CIBC Capital Markets. “That being said, I think you could see some of the effects of additional restrictions weighing on the services sector.”
Jobs in the hard-hit service sector rose by a modest 17,900, while employment in the goods sector rose by 44,200.
Full-time employment was up by 99,400 jobs while part-time employment fell by 37,400 positions. Full-time employment is 2.9-percent below pre-pandemic levels.
The Canadian dollar strengthened as much as 0.3 per cent to notch a two-year high at 1.2822 per U.S. dollar, or US77.99 cents.
The latest survey took place from Nov. 8 to 14, before public health lockdowns were imposed in populous Toronto and one of its largest suburbs. Manitoba also started lockdowns on Nov. 12.
“It's likely that COVID will catch up with the Canadian economy in the December data,” said Mendes. “I think we should expect a decline in both employment and overall economic activity.”
Some 448,000 Canadians remained underemployed in November compared with before the pandemic. Hundreds of thousands of Canadians continue to have jobs but not work any hours at all.
Total hours worked across all industries, meanwhile, rose by 1.2 per cent compared with October.