Canada’s unemployment rate rises to 6.8%

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Canada’s unemployment rate rose to 6.8 per cent in November, the highest level since January 2017, excluding the pandemic years.

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The economy added 51,000 jobs, with 45,000 of the new jobs coming in the public sector, according to data released by Statistics Canada on Friday.

The total number of unemployed persons now stands at 1.5 million, up by 276,000 compared to the same time last year. Nearly half of those currently unemployed have not worked in the last year or have never worked.

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The youth unemployment rate also rose in November to 13.9 per cent, following declines in September and October. Unemployment increased for both young women and young men aged 15 to 24 years old. The unemployment rate among core aged women rose to 5.8 per cent in November, and the jobless rate among core aged men remained unchanged at 5.7 per cent.

The employment rate held steady at 60.6 per cent, suggesting there are not enough jobs in the economy to absorb the number of people seeking employment.

Employment rose in several industries, including construction, which added 18,000 jobs after five consecutive months of stagnated growth. Wholesale and retail trade added 39,000 jobs and professional, scientific and professional services added 17,000 jobs. These gains were offset by declines in manufacturing, transportation and warehousing and the natural resources sectors.

Wage growth decelerated in the month of November, with average hourly earnings increasing by 4.1 per cent on a year-over-year basis, compared to 4.9 per cent in October.

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Unemployment was up in most of Canada’s major cities, with Windsor recording the highest jobless rate at 8.7 per cent. Toronto (8.1 per cent), Edmonton (8.3 per cent) and Calgary (7.9 per cent) also posted high unemployment rates.

The Bank of Canada will be watching the labour report, the last major economic data release before its interest rate decision on Dec. 11.

The central bank is expected to cut rates, but the size of the decrease is uncertain.

• Email: jgowling@postmedia.com

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