-Paul Ashworth, Capital Economics
Canadian economy created 53,700 new jobs in December, following the prior months' gain of 10,700 and surpassing the 5,000 decline forecast, official figures revealed on Friday. The data also showed the unemployment rate rose from 6.8% to 6.9% last month, in line with analysts' expectations as more people entered the labor market. According to Statistics Canada, full-time jobs rose 81,000, while part-time positions declined 27,000.For all of 2016, full-time employment advanced 0.4%, while part-time jobs advanced 4.5%. Overall, the Canadian economy created 214,000 new jobs during the past year, the biggest gain since 2012. Furthermore, the goods-producing sector saw a gain of 1,700 jobs in the last month of 2016, however, there was a yearly decline. Manufacturing jobs slid 3.1% over the last year despite a December increase. The services sector created 50,000 new positions, with the biggest gains registered in the technical, scientific and professional sectors. Employment growth is expected to boost economic confidence in the upcoming months.
After the release, the Canadian Dollar rose against other major currencies, trading at 1.3200 against the US Dollar and 1.3950 against the Euro.
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