Canada adds 8,200 jobs in December and unemployment rises to 6.8%

Statistics Canada reported a net gain of 8,200 jobs in December while the unemployment rate increased to 6.8% as more people searched for work.

Canada recorded a modest net increase in employment in December, according to Statistics Canada, while the unemployment rate rose. The month followed three strong months of hiring after a period of near-stagnant job growth earlier in the year. Full-time work increased but part-time positions fell, and sector results were mixed. The Bank of Canada had held its policy rate at 2.25% in December and markets expect rates to remain on hold. Key details: - Net employment rose by 8,200 in December and the unemployment rate moved up to 6.8% from 6.5%. - Economists surveyed by Reuters had forecast a net loss of about 5,000 positions and an unemployment rate of 6.6%. - Full-time employment increased by 50,200 while part-time employment declined by 42,000. - Health care and social assistance added about 20,800 jobs; professional, scientific and technical services lost about 18,100 positions, the first drop since August. - Employment for people aged 15 to 24 fell by 1.0% after prior gains, and the average hourly wage for permanent employees rose 3.7%, down from 4.0% in November. - The Canadian dollar eased slightly to C$1.3880 per U.S. dollar (about 72.05 U.S. cents) from C$1.3873 (about 72.08 U.S. cents). Summary: The December report shows modest overall hiring alongside an uptick in the unemployment rate as more people looked for work. Wage growth eased slightly from November. The Bank of Canada had kept its key rate at 2.25% on Dec. 10, and money markets expect interest rates to stay on hold for the rest of the year.