Canada created a net 59,300 new jobs in November, mostly full-time positions and in the private sector, and the jobless rate fell to 7.2 percent, the lowest level since June, from 7.4 percent. Market operators surveyed by Reuters had forecast, on average, 10,000 new jobs in November and a steady 7.4 percent jobless rate.
Finance Minister Jim Flaherty called the news "terrific" and economists were unanimously upbeat about the report, which came amid other signs the economy was struggling to gain momentum. Nonfarm payrolls in the United States rose by 146,000 in the same month, proportionately not nearly as strong as Canada, but still better than expected, while the US jobless rate fell to 7.7 percent from 7.9 percent. The average monthly employment gains were 20,700 over the past six months, a more realistic time frame given that monthly figures tend to be erratic. Canada's economy grew at a tepid 0.6 percent pace, annualised, in the third quarter. While the fourth quarter is likely to show some momentum, growth may not be strong enough to force the Bank of Canada to raise interest rates.