Canada Loses Jobs and Sees Big Increase in Unemployment
December 10, 2019
The Canadian economy saw an unexpected loss in jobs last month. Our neighbor to the north shed 71,200 jobs in November, the biggest monthly decline since the financial crisis of 2008. The loss also resulted in unemployment jumping to the highest level in more than a year.
A robust job market was seen as one of the bright spots for Canada’s sluggish economy. The nation’s GDP slowed to 1.3 percent in the third quarter, a veritable crawl as compared to the 3.5 percent growth seen the quarter before. Much like America, Canada has seen a drawdown in manufacturing and business investment and has become increasingly reliant on consumer spending to keep the economy growing.
If the job markets struggles continue, it could spur the Bank of Canada to reconsider its stance on interest rates. The central bank has resisted the interest rate cuts that many other nations, including America, have implemented in an effort to boost the economy.