Stunning News in Canada – Economy Loses 71,200 Jobs, Unemployment Jumps to 5.9%…
Posted on December 6, 2019 by sundance
Elections have consequences. On the same day the U.S. economy reports astoundingly successful jobs growth of 266,000 jobs and a drop in the unemployment rate to 3.5 percent; the Canadian state economic minister reports surprisingly terrible jobs losses of 72,200 jobs and a jump in unemployment from 5.5 to 5.9 percent.
The Canadian economy is roughly one-tenth the size of the U.S. So in equivalent terms the results from Canada reflect a comparative loss of 720,000 jobs on the same day the U.S. revises all figures upward to over 300,000 gains. A stunning economic contrast:
OTTAWA (Reuters) – The Canadian job market lost a surprise 71,200 net positions in November while the unemployment rate rose to 5.9%, the highest in more than a year, data showed on Friday, as analysts said a repeat of the weak numbers could force the Bank of Canada to rethink its monetary policy.
Analysts in a Reuters poll had forecast a gain of 10,000 jobs and had predicted the unemployment rate would hold steady at 5.5%. […] November’s numbers followed a weak report in October, when the labor market unexpectedly shed jobs despite a likely boost from hiring related to the federal election.
[…] Canada’s goods-producing industries saw a decline of 26,600 net jobs, largely on manufacturing. The services sector lost 44,400 net jobs.
November’s unemployment rate was the highest seen since the 6.0% reported in August 2018. 38,400 full-time jobs and 32,800 part-time jobs were lost in November. ( read more)
It is worth remembering that Canada does not allow competition in their media sector. The Canadian government considers the news media a protected “cultural industry”; and through a process of subsidizing broadcast all news media is essentially state run media.
Why is this important? Well, when the expressed priority of the government is controlling broadcast information if you are intellectually honest you should apply that same ideological outlook toward any information from the government in a general sense.
The Canadian election was held on October 21st, 2019. The central control government of Justin Trudeau would likely hold-back any negative economic information in an effort to support the ideology of the central government and maintain public opinion in advance of the voting. However, with the election over the economic books need to be reconciled.
I strongly suspect the Canadian November jobs report encompasses some of that state run reconciliation effort. Meaning the Canadian economy was in much worse shape in the months leading up to the election than state media were broadcasting. The reality is now catching up….
Secondly, it was obvious in July of this year that Speaker Nancy Pelosi and Justin Trudeau entered into an agreement of mutual benefit. Trudeau would hold back submission of the USMCA for parliamentary ratification, and left-wing political ideologues in the U.S. would help Trudeau win re-election.
At the time CTH forewarned of what this type of political arrangement really meant.
In essence Prime Minister Justin Trudeau was willing to compromise the health of his own economy for stunningly political reasons. There was a perfect storm of negative economic dynamics clearly visible on the horizon…. but few were paying attention.
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