Canada sheds 62,600 new jobs in December; unemployment rate increases to 8.6 percent

Statistics Canada reported on Friday that the number of employed people decreased by 62,600 m-o-m in December (or -0.3 percent m-o-m) after an unrevised gain of 62,100 m-o-m in the previous month. This was the first decrease in Canada’s employment since April.

Economists had forecast a drop of 27,500 m-o-m.

Meanwhile, Canada's unemployment rate rose to 8.6 percent in December from 8.5 percent in November, matching economists’ forecast for 8.6 percent.

According to the report, full-time employment increased by 36,500 (or +0.2 percent m-o-m) in December, while part-time jobs plunged by 99,000 (or -2.9 percent m-o-m).

In December, the number of public sector employees rose by 14,600 (or +0.4 percent m-o-m), while the number of private sector employees dropped by 15,200 (or -0.1 percent m-o-m) and the number of self-employed tumbled by 62,000 (or -2.2 percent m-o-m) last month.

Sector-wise, employment increased in the goods-producing sector (+0.3 percent m-o-m) but fell in the service-producing business (-0.5 percent m-o-m; the first decline in the sector since April).