Economists from the Toronto-Dominion Bank, Canada’s second largest bank by assets (with RBC heading the list), say that the national unemployment rate could skyrocket to almost nine per cent in 2009, marking over 300,000 job losses within the country.

The last two months of 2008 were marked by approximately 85,000 job losses in Canada, but TD’s economic analysis department says the negative feedback loop of existent job losses and diminishing credit conditions will severely and negatively impact the entire country.

The department says that 2008 was relatively stable, as the lag of external problems (coming from Canada’s largest trade partner, the United States) has yet to be seen in full force.

“What happens is manufacturers and other export producers cut back production, then you get employment cuts, and we’re just beginning to see that now, and that will weigh on consumer spending,” said Derek Burleton from Toronto-Dominion to CBC News.

Burleton also speculated that President Obama’s stimulus bill could be the savior for Canada’s economy.

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