Every week here at theCurrent we round up the world’s biggest business stories. This week: Canada drops jobs, the US creates jobs but not enough to satisfy the markets, LinkedIn shares tumble, loonie rebounds late in the week.
Canada loses Jobs
The Canadian economy lost 5 700 jobs in January, pushing the unemployment rate up to 7.2%. Economists had predicted that 6 000 jobs would be added during the month. Ontario was the only province with an increase in employment this January adding 20 000 new jobs while Alberta lost another 10 000. Alberta has shed 35 000 over the last 12 months while Ontario has added 100 000.
US Adds Jobs
The US economy added 151 000 jobs in January dropping the unemployment rate to 4.9%, the lowest level in almost 8 years. Average wages also grew to $25.39 an hour, up 2.5%. Despite these positive trends, the transportation and warehousing sector, education services and temporary workers all experienced job losses.
Stock Market Sinks
Despite the drop in unemployment, the stock markets reacted negatively as the number of new jobs created fell short of forecasts. The 151 000 new jobs that were created is far below the 292 000 created in December. The Dow Jones dropped 0.37% while the S&P 500 fell 0.65% and the Nasdaq fell 0.79%.
Shares in the online networking tech giant LinkedIn fell by 26% after profits fell short of predictions. Forecasts had predicted earnings equivalent to $0.74 per share, but came in at just $0.55. The company also suffered an $8 million loss in 2015, down from a $3 million profit in 2014.
On Thursday the Canadian dollar peaked at over 73 cents US during daytime trading, its highest point since December of last year. On Wednesday the loonie gained 1.32 cents on the greenback – the largest one day increase in 4 years. Could this be the start of a recovery? Oil prices remain low, but poor US economic data has threatened the strength of the USD.
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