November Labour Force Survey: Employment Tumbles
The Canadian job market has lost momentum heading into 2020.
The jobs numbers have been outpacing other measures of economic activity throughout the year, so we’ve been waiting to see if they’d come back to earth. However, rather than a gradual slowdown, employment fell with a thud in November, the largest monthly drop since the Great Recession. The sources of the drop were also discouraging, with private sector employees posting the largest decline. Goods-producing industries like manufacturing and natural resources, which were already softening in recent months, took another hit, but this time were joined by a drop in services.
Overall, this was definitely not the way we wanted to see the Canadian labour market end the year. On a year-over-year basis, the November decline knocked job growth down from its above-population growth pace, from 2.4% to 1.6%. We know the jobs numbers have their monthly ups and downs but the question now is where do we go from here?
Brendon Bernard is an Economist at the Indeed Hiring Lab, focusing on the Canadian labour market. His research interests include analyzing how detailed trends in the job market fit in with broader developments in the Canadian economy. Brendon was previously an economist with Department of Finance Canada, where he focused on analyzing Canadian financial sector policy and the U.S. economy. He holds a Master’s in Economics from the Vancouver School of Economics at University of British Columbia, as well as a Bachelor of Arts (Honours) from Queen’s University.