Economists had expected to see only about 5,000 new jobs last month, particularly given an exceptional November gain of 59,000 positions. Notable, too, is that the new jobs were full-time, private sector positions, something that should buoy consumer confidence.
But headwinds are blowing, and job creation is expected to slow to be more in line with weaker economic growth, meaning it will be tough to bring unemployment below the 7-per-cent mark.
“Though Canada experienced some solid job gains in 2012, employment is typically a lagging indicator,” said chief economist David Watt of HSBC Bank Canada.
“There is thus somewhat of a disconnect between the sluggish economy and the solid job creation. We don’t expect that to continue. Instead, we expect job creation to be more moderate in 2013, consistent with an economy that is struggling for momentum.”