The economy added 8,200 jobs. Some are confusing a rise in the number of unemployed people with a loss of jobs, but those are not the same thing.
A quick note to address something I’m seeing on social media in response to the latest Canadian jobs report.
Some are claiming that Canada “lost 73,000 jobs” in December, despite the fact that Statistics Canada is reporting a net gain of 8,200 jobs.
So, where is the 73,000 figure coming from? It appears to be a misreading of the rise in unemployment. The number of unemployed Canadians rose by 73,000 people. However, this does not mean 73,000 people lost their jobs. Unemployment statistics include those who are looking for work, while those not looking for work are not considered unemployed. As a result, when more people start looking for work, the unemployment rate can rise without jobs being lost.
That’s what happened in December, as Statistics Canada notes: “The unemployment rate rose 0.3 percentage points to 6.8% in December, as more people searched for work. The increase in the unemployment rate in December partially offsets a cumulative decline of 0.6 percentage points in the previous two months.”
Canada did not lose 73,000 jobs in December. Instead, a number of Canadians who were previously not looking for work began looking for work, and were added to the ranks of those considered unemployed. Overall, the Canadian economy generated a net gain of 8,200 jobs, not a significant increase, but also not a decline.
It’s important to get the facts right.
Spencer Fernando
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