Lately Canada has seemed hopeful for a growing economy, with economists expecting gradual gains in jobs throughout the country this year. Despite our hopes for the best case scenario, the job market in Canada looks like it just took a turn for the worse.
Completely unforeseen, Canada's economy dropped 51,600 jobs this month, with Ontario holding the biggest loss of employment in almost a decade.
The information was released by Statistics Canada this morning. With a reversal of all the employment that was gained earlier this year, the country will be seeing a sluggish labour market.
It's expected that now the Bank of Canada will be making a move over the next few months to increase borrowing costs.
The Bank of Canada has raised their interest rates four times since last year in an attempt to keep up with price gains correlated to the current economy.
This year so far the economy has gotten rid of 14,600 jobs with part-time employment down by 111,900.
The most excrutiating month this year was August. Yes, not only was last month horrible for its summer heatwaves, but also for its net loss.
It was the second largest monthly decline since the Great Recession.
The unemployment rate in Canada has risen to 6 per cent, higher than even the economist's expectations for the month.
As a consequence, the Canadian dollar sank 0.3 per cent before rising back up to 0.4 per cent on Thursday.
Both construction and professional services were the broad areas of job loss, with Ontario leading with the largest rate of unemployment.
It's safe to say that right now Canada's economy isn't looking as good as we previously thought.
It's uncertain whether more massive job losses will occur in the upcoming months.
Stay tuned for more information.