Canada’s unemployment rate unexpectedly rose from a five-year low last month on a drop in full-time work, taking it above the U.S. jobless measure for the first time since 2008.
Unemployment rose to 7.2 percent from 6.9 percent while employment fell by 45,900 in December, Statistics Canada said today in Ottawa. Economists surveyed projected a 14,100 job increase and an unchanged unemployment rate according to the median forecasts.
The weaker job market, tepid exports and sluggish business investment are hampering economic growth. Bank of Canada Governor Stephen Poloz said in an interview last month that a rotation of demand from indebted consumers is taking longer than he expected and predicted the economy won’t reach full output for two years. The Canadian dollar dropped to a four-year low and bond yields plunged.
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