Employment in Canada: New jobs data released [Video]

OTTAWA –

Canada’s unemployment rate rose more than expected to 6.8 per cent in November, a near-eight-year high excluding the pandemic years, even as the economy added a net 50,500 jobs, data showed on Friday, boosting chances of a large interest rate cut next week.

Currency markets increased the bets for a rate cut of 50 basis points next week to 68 per cent from 55 per cent before the employment report was released. A rate reduction of 25 basis points is fully priced in.

• Download the CTV News App for breaking news alerts and video on all the top stories

Analysts polled by Reuters had forecast a net gain of 25,000 jobs and an unemployment rate of 6.6 per cent from 6.5 per cent in October.

The jump in unemployment may nudge the Canadian central bank toward lower borrowing costs by a larger-than-typical half a percentage point for a second consecutive …