The December jobs report that showed Canada’s unemployment rate has dropped to the lowest level in 41 years may have been a big surprise, but the response it’s elicited from Bay Street is what’s most shocking to David Rosenberg.

In a note sent to clients on Monday, the Gluskin Sheff chief economist wrote he’s rarely “seen such lopsided and hyperbolic responses to a piece of economic data before as much as the December employment report.”

The comments come after Statistics Canada on Friday said that the country generated 78,600 net new positions, including 23,700 full-time jobs. The unemployment rate fell to 5.7 per cent, from 5.9 per cent in November, hitting its lowest level since comparable data became available in 1976.

The job numbers led many analysts to believe the Bank of Canada will raise its benchmark interest rate, possibly as early as Jan. 17 when the next policy meeting is scheduled. 

But Rosenberg warns Bay Street economists are in “wild overreaction mode,” pointing to downside economic risks for Canada -- including new housing regulations and NAFTA uncertainties in the coming year -- and even potential problems with the Statscan data.

“There is just far too wide a disconnect between the real side output/spending data and the jobs report. I have heard all sorts of rumblings over the quality of the Canadian data in recent years, and I don’t disagree,” Rosenberg wrote.

“Knee-jerk reactions compounded by Bay Street economists hyperventilating can often generate some decent investment opportunities.”