Canada lost 62,600 jobs, more than double analyst expectations of a decline of 27,500, while the unemployment rate edged up to 8.6%, in line with expectations. Employment remains 3.3% below pre-pandemic levels. A number of regions across Canada have imposed harsher restrictions and lockdowns amid a surge in COVID-19 cases, with Canada’s daily new case average now topping 7,688. That has analysts anticipating further job losses.
Mendes added that the poor outlook for employment could put pressure on the Bank of Canada to further ease monetary policy. The central bank has said it could cut record low interest rates further if the economic situation worsens.
The Canadian dollar was little changed at 1.2681 per U.S. dollar, or 78.86 U.S. cents, after initially weakening after the data. The service sector, which has been hit by fresh restrictions on retail, food services and fitness facilities, lost 74,000 jobs, while employment in the goods sector rose by 11,300.
Canada loses 62,600 jobs in December, first decline since April
By Julie Gordon
OTTAWA (Reuters) -