Canada Economy Sheds 70,600 Jobs, Most Since 1982, on Manufacturing Slump

[marmar]

Canada Lost 70,600 Jobs, Most Since ‘82, on Factories (Update1)
By Greg Quinn


Dec. 5 (Bloomberg) -- Canadian employment fell by the most since 1982 in November, led by manufacturing, a sign the world’s eighth-largest economy is falling victim to a global recession.

Employers shed a net 70,600 workers, almost three times as many as economists anticipated, after a gain of 9,500 in October. The unemployment rate rose to a two-year high of 6.3 percent from 6.2 percent the month before.

The figures come a day after Prime Minister Stephen Harper suspended Parliament to prevent being toppled by opposition parties who say he hasn’t done enough to help an economy that may have already slipped into recession. Bank of Canada Governor Mark Carney will probably cut interest rates by half a point to 1.75 percent on Dec. 9, the lowest in more than 50 years, according to economists surveyed by Bloomberg.

“It makes a stronger case for the Bank of Canada to move 50 basis points” next week, said Millan Mulraine, an economics strategist at TD Securities Inc. in Toronto. “A case could be made they might do a bit more. Our official call is for 50, but central bankers have shown a willingness to do more.”

Factory owners slashed payrolls by 38,300 workers in November, the most since January 2006, and another 26,000 jobs were lost in transportation and warehousing. Employment in public administration fell by 26,700, after hiring in that sector jumped by 39,800 in October as Canada geared up for national elections on Oct. 14.

The Canadian dollar weakened 1.1 percent to C$1.2903 per U.S. dollar at 7:43 a.m. in Toronto from C$1.2758 late yesterday.

The economy is suffering from weak demand in the U.S. and slumping prices for commodities such as oil and wheat, which generate about half the country’s export revenue. Automakers and forestry companies have been among the hardest hit. ........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a71.wrr.7jbE&refer=home

[tuvor]

1. Time for a seven-week parliamentary Christmas holiday!

:grr:

[depakid]

2. Depending on how bad things get, Michaëlle Jean may end up a very unpopular person...