Massive job losses in Canada increases unemployment to 7.3%

In October, Canada surprisingly lost 54,000 jobs, which indicates that businesses in the country are faltering and consumer confidence is eventually reducing the pace of employment.

Statistics Canada believes all 54,000 jobs were full-time positions, which in turn increased Canada’s jobless rate to 7.3 per cent.

Avery Shenfeld, chief economist at CIBC World Markets said: “Suddenly the jobs market doesn’t look quite so rosy in Canada. Canadian employment was weak across the board in October.”

In addition, Canada’s slowing wage growth to 1.3 per cent from a year ago is also a crucial feature for the economy.

Bank of Nova Scotia economists Derek Holt and Karen Cordes said: “Swings of tens of thousands in the monthly job count matter far less than the fact that the millions of employed Canadians are just not making wage gains that are keeping up with the cost of filling their grocery carts, fueling their cars and what they’re spending on other staples.”

The sudden plunge in employment completely shattered the massive gain of 61,000 jobs in September.

"While job losses in any given month are by no means rare, losses of this magnitude are extremely rare, aside from recessionary periods —the last such hefty job drop outside of recession was in September 1996," said BMO Capital Markets deputy chief economist Douglas Porter in a commentary.

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