Dave Larock in Monday Interest Rate Update, Mortgages and Finance, Home Buying, Toronto Real Estate News Editor's Note: Dave's Monday Morning Interest Rate Update appears on Move Smartly weekly. Check back weekly for analysis that is always ahead of the pack.
Canadian bond yields fell sharply last Friday when Statistics Canada released its latest employment data for December. Our economy shed 46,000 jobs last month, all of them full time.
This number was well below the 14,000 new jobs that economists were expecting and it pushes our unemployment rate from 6.9% to 7.2%, heightening fears that our economic momentum is stalling out.
We shouldn’t assign too much significance to one month’s employment report because these data are volatile and are often revised in subsequent months, but Canada’s job creation engine has been slowing for some time now. We averaged only 8,500 new jobs/month in 2013, well below our 2012 average of approximately 25,000 new jobs/month. Worse still is the fact that this number is not even close to the 20,000 new jobs/month our economy needs just to keep pace with our population growth.