Canada’s economy surprised by adding a better-than-expected 54,000 new jobs in November.
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The consensus view of economists surveyed by Reuters (TRI) was for Canada’s economy to lose jobs during the month. Instead, November marked the third consecutive month of job gains across the country. The positive labor report has leading Canadian stocks such as Shopify (SHOP) and Lululemon Athletica (LULU) moving higher on Dec. 5.
The strong job gains pushed Canada’s unemployment rate down to 6.5% in November from 6.9% in October. Statistics Canada, which released the data, said there were 26,000 fewer people in the labor market last month, helping to push the jobless rate down. In all, Canada’s economy added 181,000 new jobs between September and November of this year.
Adjusting to Tariffs
Throughout the spring and summer, Canada’s labor market had weakened as the country dealt with the shock of U.S. tariffs and the uncertainty they caused. Economists are now saying that Canada appears to be adjusting to the new realities of life next door to the Trump Administration.
Most of November’s job gains were concentrated in part-time work, according to Statistics Canada. The government agency also noted that youth aged 15 to 24 drove most of the employment gains, accounting for 50,000 of the new jobs in November.
Is SHOP Stock a Buy?
The stock of Shopify has a consensus Moderate Buy rating among 29 Wall Street analysts. That rating is based on 17 Buy and 12 Hold recommendations issued in the last three months. The average SHOP price target of $179.54 implies 10.25% upside from current levels.
