By David Ljunggren
OTTAWA, Feb 5 (Reuters) - Canada lost 5,700 jobs in January
and the unemployment rate edged up to a two-year high of 7.2
percent, in part because of further job losses in the
oil-producing province of Alberta, underlining the economy's
struggles with weak energy prices.
Analysts polled by Reuters had forecast a gain of 5,500
positions and for the unemployment rate to stay at 7.1 percent.
It last hit 7.2 percent in December 2013.
Statistics Canada said on Friday that in the year to
January, employment increased by an anemic 125,500 jobs, or 0.7
percent.
"Overall the story is the economy is struggling to grow and
it is struggling to produce much in the way of employment," said
BMO Capital Markets chief economist Doug Porter.
The jobless rate in the energy-producing province of Alberta
rose to 7.4 percent, the highest since February 1996. January
marked the first month since December 1988 that the Alberta
unemployment rate exceeded the national rate.
The Bank of Canada last month decided not to cut interest
rates but admitted it was not an easy call, as concern about a
rapid decline in the currency clashed with an economic slump.
In January, the economy created 5,600 full-time jobs and
lost 11,300 part-time positions.
"We're looking at something that is vaguely consistent
(with) a slower pace of hiring, which makes perfect sense given
the conditions in the wider economy," said David Tulk, chief
Canada macro strategist at TD Securities.
The Canadian dollar weakened on the data, touching C$1.3785
to the U.S. dollar, or 72.54 U.S. cents. CAD/
The six-month moving average for employment growth was
8,900, down from 10,700 in November.
While the weak dollar is hitting jobs, it is also helping
Canada's exporters.
The trade deficit unexpectedly shrank to C$585 million ($424
million) in December from C$1.59 billion in November as exports
jumped by a healthy 3.9 percent.
Analysts polled by Reuters had forecast a deficit of C$2.2
billion. Statscan said imports grew 1.6 percent after three
consecutive monthly decreases.
Exports to the United States, which accounted for 74.8
percent of Canada's global total in December, grew 2.9 percent
while imports grew 1.3 percent. As a result, Canada's trade
surplus with the United States swelled to C$3.19 billion from
C$2.63 billion in November.
Canada posted a record C$23.32 billion trade deficit in
2015.
($1=$1.38 Canadian)