Unemployment rate rises to 5.8% in November: Statistics Canada

Canada’s unemployment rate rose to 5.8 per cent in November, as high interest rates continue to weigh on job creation throughout the country.

The November labour force survey from Statistics Canada showed an addition of a modest 25,000 jobs to the economy.

The largest gains in employment were seen in the manufacturing and construction sectors, while the most jobs lost were in wholesale and retail trade, along with losses in finance, insurance, real estate, rental and leasing.

November’s rate is up 0.1 per cent from the previous month.

Employment was little changed in November (+25,000; +0.1%) and the employment rate fell 0.1 percentage points to 61.8%. To learn more: https://t.co/pyuxWlDnrl. pic.twitter.com/CmyPoIsKFF

— Statistics Canada (@StatCan_eng) December 1, 2023

Following a strong bounce back in the labour market post-pandemic, the unemployment rate has been on a steady climb upwards since April as the Canadian economy begins to show increasingly clear signs of weakness.

Real gross domestic product, the measure of the size of the economy, has struggled to grow in a consistent manner over the past year, with the most recent GDP report reflecting the economy decreasing 1.1 per cent on an annual basis in the third quarter.

READ MORE: Canada’s unemployment rate rises to 5.7% in October

The country’s unemployment rate now finds itself hovering around pre-pandemic levels, but experts expect it to continue to climb as higher borrowing rates continue to weigh on businesses.

The weaker job market means that more workers are finding themselves unemployed due to layoffs, with Friday’s report saying that those who are unemployed are more likely to have been laid off compared to one year ago.

Despite these trends, average hourly wages continue to grow, rising 4.8 per cent from the previous year, as more and more workers seek compensation comparable to recent rates of inflation.

The Bank of Canada is expected to announce its latest interest rate decision on Wednesday, with forecasters largely believing the central bank is through with raising rates.

Currently, the key interest rate sits at the highest its been since 2001 at five per cent.

This report was created with files from The Canadian Press 

READ MORE: Bank of Canada says key interest rate remains 5% amid weakening economy