Unemployment rate goes up even as new jobs added

After the US economy slow down and other countries following the same trend, Canadian economy does not look promising either.  Bank of Canada Governor Mark Carney signaled his country may slide into a recession like other industrialized nations, adding weight to economists' forecasts that he may pare interest rates to the lowest since 1960.

We are predicting very marginal growth in 2009,'' Carney said in an interview yesterday when asked if he thought a recession might happen. ``By definition that's close to negative growth, and if we have a balanced forecast you can see it going either side, so it's a possibility.''

Carney cut his key interest rate to 2.25 percent last month and said the world's eighth-largest economy would shrink this quarter and stall in the first three months of 2009. Three of the country's biggest banks predict a recession, generally considered two quarters of contraction. 

The comments ``reinforce the bank's view that more stimulus is needed,'' said Michael Gregory, a senior economist at BMO Capital Markets in Toronto. Carney will probably cut rates to 2 percent at the next meeting Dec. 9, and may go below that next year, he said.

Canada's key rate hasn't been below 2 percent since 1960, an era when it was based on treasury yields rather than actions by policy makers. The bank aims for 2 percent inflation, and Gregory said it would cross ``a very important line'' for Carney to take borrowing costs below inflation.
Source: Bloomberg

Canada's unemployment rate edged up to 6.2 per cent in October from 6.1 per cent the previous month, Statistics Canada said Friday, even as the economy unexpectedly added thousands of new positions despite struggling to avoid a recession amid a global economic slowdown.

So guys, its time to stick with the current employer rather then looking for career/ job change.