According to economists, Canadian unemployment is set to rise to 6.5% from its prior 6.3% level.

Paul Ferley, assistant chief economist from RBC Capital Markets expects the Canadian employment report to reveal 20,000 jobs lost.

"While the pace of employment declines is projected to slow, the pace of rise in the unemployment rate is expected to quicken rising to 6.6% from 6.3% in November and 6.2% in October," he said.

Unemployment in the U.S. is also expected to continue its negative trend, with economists predicting job losses will hit 510k in December.

Scotia Capital economist Derek Holt is highly pessimistic about the report. He expects to see a whopping 750,000 jobs to disappear in December - the most pessimistic forecast of the 72 economists polled by Bloomberg. With two exceptions before 1950, Holt notes "that would be the single biggest monthly drop in history."

Manufacturing is also looking to drop 100k workers off their payroll in December. Scott Anderson, a senior economist for Wells Fargo forecasts at least 120,000 in jobs losses, due to the shutdowns of auto manufacturing plants.

With inventories at record levels, U.S. housing continues to be highly scrutinized by markets. U.S. housing starts are projected to come in at 170k, down slightly from the prior month's 172k total.

U.S. wholesale inventories are poised to continue their freefall in November. Inventories are expected to drop 0.7%, after the prior month's 1.1% decline.

All times in EST

7:00 CA Unemployment Rate DEC Exp: +6.5% Prior: +6.3%

7:00 CA Net Change in Employment DEC Exp: -20.0K Prior: -70.6K

8:15 CA Housing Starts DEC Exp: +170.0K Prior: +172.0K

8:30 CA Building Permits M/M NOV Exp: -5.0% Prior: -15.7%

8:30 US Change in Nonfarm Payrolls DEC Exp: -510K Prior: -533K

8:30 US Unemployment Rate DEC Exp: +7.0% Prior: +6.7%

8:30 US Change in Manufacturing Payrolls DEC Exp: -100K Prior: -85K

8:30 US Average Hourly Earnings M/M DEC Exp: +0.2% Prior: +0.4%

8:30 US Average Hourly Earnings Y/Y DEC Exp: +3.6% Prior: +3.7%

8:30 US Average Weekly Hours DEC Exp: +33.5 Prior: +33.5

10:00 US Wholesale Inventories NOV Exp: -0.7% Prior: -1.1%

12:30 US Fed's Lacker Speaks on Financial Conditions in Maryland

By Steve Stecyk, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Megan Ainscow, This email address is being protected from spam bots, you need Javascript enabled to view it

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