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Canadian Economy Adds 79,000 Jobs In November; Unemployment Down To 8.5%

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The Canadian employment picture brightened significantly in November, as the nation's private sector began adding jobs. Canada's economy unexpectedly added 79,000 jobs last month, bringing the unemployment rate down 0.1 percentage points to 8.5%, according to data released Friday by Statistics Canada.

Still, employment was 321,000, or 1.9 percent, below the peak of October 2008, just prior to the financial crisis that sparked a severe global economic downturn.

November saw an increase in the number of private and public sector employees, while the number of self-employed workers declined.

The agency noted that in recent months, the number of employees in the public sector, as well as the number of self-employed, has trended up, while in the private sector, the trend has been relatively flat.

Almost all the employment growth in November was attributable to the service sector, especially educational services. With November's increase, employment in the service sector is back at its October 2008 level.

However, employment in the goods sector remained well below where it was at that time.

The data will likely raise questions about when the Bank of Canada will begin to hike interest rates. Policy makers have signaled that rates will remain low for now in order to avoid snuffing out the tenuous economic recovery.

(Market News Provided by RTTNews)

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