Canada loses 45,900 jobs in December; jobless rate rises to 7.2 per cent

Canada’s jobless rate unexpectedly rose in December to 7.2 per cent, up from 6.9 per cent in November, as more people went job hunting.

Statistics Canada said Friday that employment fell by 46,000 in December, driven by a drop in full-time positions.

The results were a surprise since economists were calling for an increase of between 5,000 and 15,000 jobs last month, and for the unemployment rate to remain at 6.9 per cent.

“A huge disappointment,” said CIBC economist Avery Shenfeld. “The result took the jobless rate sharply higher, to 7.2 per cent, a big step in the wrong direction for that key indictor of economic slack.”

Jobs were lost in Ontario and Alberta, but increased in British Columbia and Newfoundland and Labrador. The jobs losses came in educational services as well as the agriculture and natural resources sector. Even the number of self-employed people fell last month.

For 2013 overall, Canada added 102,000, jobs “ he slowest December-to-December growth rate since 2009,” according to StatsCan. That compared to an additional 264,000 jobs created in 2012.

The employment data also disappointed in the U.S., where 74,000 positions were added last month. Economists were calling for more than twice that at amount, or more than 200,000 positions.