Canadian jobless rate drops to 6.8 per cent

Canada adds 10,700 jobs, unemployment rate dips due to additional part time jobs.

The jobless rate in Canada fell to 6.8 per cent due to more part-time jobs.

The Canadian labour market unexpectedly added 10,700 net jobs last month and the unemployment rate slid to 6.8 per cent – but the latest numbers raise questions about the quality of the work.

Statistics Canada’s November employment survey shows yet another monthly decline in the more-desirable category of full-time work — a figure more than offset by a gain in part-time jobs.

The report says the market added 19,400 part-time jobs last month and shed 8,700 full-time positions.

Compared with November 2015, Canada gained 183,200 jobs overall for an increase of 0.1 per cent – but over that period full-time work fell by 30,500 positions, while the part-time category piled up an additional 213,700 jobs.

Last month’s data did beat the expectations of a consensus of economists, who had predicted Canada to shed 20,000 positions in November and for the jobless rate to stay at seven per cent, according to Thomson Reuters.

The jobs report says the unemployment rate dropped to 6.8 per cent from seven per cent because fewer people were searching for work.

The agency says there were 41,300 additional paid employee jobs last month, while the number of positions in the less-desirable class of self-employed workers — some of which may have been unpaid – fell by 30,700.

Over the 12 months leading up to November, the labour market added 220,100 employee jobs and shed 22,100 self-employed positions.

Last month, the services sector gained 31,200 net new jobs, with the bulk of the increase concentrated in finance, insurance and real estate as well as information, culture and recreation.

The country’s goods-producing sector lost 20,600 positions with construction and manufacturing seeing the biggest declines.

Statistics Canada also said the number of private-sector jobs rose by 29,700 jobs last month, while the public sector added 11,600.

Among the provinces, Ontario gained the most jobs last month with 18,900 new positions, an increase of 0.3 per cent compared with October. The province has seen job numbers climb 1.5 per cent over the last year.

Alberta shed 12,800 positions last month – 13,600 of which were full-time jobs. On a year-over-year basis, employment in the hard-hit province fell 1.3 per cent overall, while full-time work slid 3.9 per cent.

British Columbia lost 600 positions last month, but compared to a year earlier it still led all provinces with the fastest growth rate of 2.1 per cent.

Quebec added 8,500 jobs in November and, compared to 12 months earlier, employment there climbed by two per cent.

Nova Scotia saw a month-over-month increase of 0.8 per cent in November by adding 3,700 jobs. The increase, however, was fuelled by part-time work as the province lost 200 full-time positions.

Follow @AndyBlatchford on Twitter

Andy Blatchford, The Canadian Press

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