The Canadian economy lost 63K jobs in December, the worst number since April. Analysts at RBC Capital Markets expect the first quarter to be a challenging one for the economy, with no growth in GDP expected.
Key Quotes:
“The 63k drop in employment in December was the first decline since the spring, albeit only a fraction of the 3 million pullback over March and April last year. The unemployment rate edged up to 8.6% from 8.5% and the labour force participation rate fell.”
“With virus spread remaining at alarming levels in much of Canada, and containment measures being extended and expanded, both the labour market and broader economic recovery appear to have stalled.”
“We expect the first quarter of 2021 will be a challenging one for the Canadian economy, with no growth in GDP expected. As vaccinations become more broadly distributed we look for the economy to regain its momentum leading to a recovery in job creation.”
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