July jobs report ‘does nothing to dissuade’ more rate cuts: economists
Steady employment levels in July mask “some warning signs” about the health of the Canadian labour market, with most economists expecting the latest figures will open the door for more interest rate cuts to come from the Bank of Canada.
Staistics Canada reported Friday that the national unemployment rate held firm at 6.4 per cent in July as total employment was “little changed” last month. Some 2,800 jobs were lost in July, the agency said.
That marks the second consecutive month of job losses for Canada after net 1,400 positions were lost in June. But overall, employment is still higher by around 346,000 positions year-over-year.
“This was actually one of the most mixed labour market reports we’ve had in a while,” says Stephen Brown, deputy chief North America economist at Capital Economics.
The July jobs report was a story of trade-offs: where private industry shed 42,000 positions, the public sector added 41,000 new hires; where the full-time employment surged by 62,000 jobs, part-time work fell by 64,000 roles.
The wholesale and retail trade industry led job losses last month, shedding 44,000 positions, followed by the finance, insurance and real estate sector, down 15,000 positions. Offsetting those losses were new hires in public administration, transportation and warehousing and utilities sector.
Women and men aged 55-64 both saw a drop in employment, shedding 41,000 and 15,000 jobs, respectively. Young men aged 15-24 also faced job losses in the month (down 20,000 positions), while core aged men between 25 and 54 years old saw a jump (up 48,000 positions).
Employers have slowed their hiring paces as Canada’s economy cools, with the unemployment rate rising largely due to strong population growth rather than
Read more on globalnews.ca
