The unemployment rate in Canada increased from a five-year low to the largest drop in full-time employment since 2011. The rate rose from 6.9 to 7.2 on a decline of 45K total jobs in December, according to Statistics Canada. There was a decline of 60K full-time employment and a bump-up in part-time employment with 14,500 jobs added.
Natural resource companies released 8K workers last month, while 18,500 jobs were cut from the education field. Ontario, highest populated province, seen a .5 percent jump in their unemployment rate to 7.9 percent. Statistics Canada reported a drop in employment by 39,300.
Canada, also, is struggling with decade low in labor force participation at 66.4 percent. This held steady for the fourth consecutive month. The average hourly wage increased two percent in December, year-over-year. This was .3 slower than the previous recording.
Canadian workers are losing confidence, and only 45.9 percent believed their jobs were secure. This was down from 48.9 percent in December, according to the Bloomberg Nanos Canadian Confidence Index.
The Canadian dollar declined on the news pushing the USDCAD rate through 1.0930. The pair is likely to find short-term resistance and pullback slightly. However, the weekly chart should that a move to 1.122 is possible if the pair can overtake the current resistance points on continued mixed Canadian data. Traders are likely to see 1.100 in the coming weeks.