CANADA: Economy sheds 24200 jobs in July according to Statcan

Andrew Cummings
August 10, 2019

The unemployment rate increased by 0.2 percentage points to 5.7%.

In Niagara, the rate is in line with the national average at 5.7 percent.

"Clearly it's on the disappointing side of expectations", said BMO Chief Economist Doug Porter.

In Saskatchewan, the workforce shrunk by almost 2,200, coming through a loss of 10,900 full-time positions and a gain of 8,800 part-time roles.

A big drop in the unemployment rate for western Alberta for the month of July. Yet, this loss, documented by Statistics Canada, was offset by a jump of 27,700 people in self-employment and 17,500 in the public sector.

Multi-family dwellings posted the largest monthly decline, Statscan said, falling 6.7% in June.

The increase in wages - as measured by year-over-year average hourly wage growth for all employees - marked the indicator's strongest month since January 2009.

The survey found the numbers were almost flat between May and July, a period that saw Canada add an average of 400 jobs per month.

The current blow in employment was mainly felt in the private sector, which shed 69,300 positions (unparalleled since 2003).

"The Bank of Canada needs to tread carefully", Derek Holt, vice president of capital markets economics at Scotiabank, cautioned on Friday, noting Canada's domestic data could start "to weaken in the third quarter".

"Of course, we have to wait and see what actually happens on the trade front in the next few weeks, but this certainly is supportive of the doves' view", he said.

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