Canadian Recovery Still Feeble
CBJ – While the Canadian economy has not fallen backwards, fewer jobs being created in addition to a slowdown in exports has definitely put the brakes on an economic recovery that economists had been hoping to see.
Statistics Canada reports that the Canadian employment fell by 10,700 in November, led by a drop in retail positions, while the unemployment rate rose to 6.6% from a six-year low of 6.5% the previous month. The country’s trade surplus narrowed for a third straight month in October as export growth slowed.
While Bank of Canada policy makers said on Wednesday there are early signs of a self-sustaining economic recovery, the central bank’s statement accompanying the decision to keep the policy interest rate at 1% also said the job market indicates “significant slack” remains in the world’s 11th-largest economy.
Making the slowdown that much more noticeable is the fact Canada’s jobs report contrasted greatly with a gain of 321,000 jobs south of the border, the most in almost three years, according to figures released earlier this week by the U.S. Labor Department.