Saturday, July 12, 2008

Unemployment rate creeps up to 6.2%

Canada's unemployment rate crept up 0.1 percentage points in June to 6.2 per cent as the economy lost about 5,000 jobs.

Statistics Canada said Friday that gains in part-time employment last month largely offset declines in full-time work.

The job report was weaker than economists had been expecting. Economists polled by Bloomberg news service had an average forecast of an addition of 6,500 jobs for the month.

The Canadian dollar closed down just 0.01 of a cent at 99.09 after trading lower earlier in the morning.

Statistics Canada said the only industry with a notable increase in employment last month was professional, scientific and technical services, with monthly gains totalling 37,000 jobs.

The trade sector added 12,900 jobs, while the information, culture and recreation sector gained 10,100 workers.

Industries losing jobs in June included:

Business.Health care and social assistance.Building and other support services.Construction.

Employment for June in the battered manufacturing sector was essentially flat.

"Overall, June’s employment report shows a labour market that is moving closer in line with the slowing economic growth picture," said TD Bank economist James Marple. "Job growth is a lagging indicator and the contraction experienced in the first quarter of this year is now showing up in the job numbers."

Dawn Desjardins, assistant chief economist at RBC economics research, said Canada's economy is set to continue to grow at a sub-potential pace.

"Today's weaker-than-expected jobs report and the trade balance numbers set the stage for the Bank of Canada to hold the policy rate steady at next week's rate-setting meeting despite policymakers' growing concerns about the near-term inflation outlook," Desjardins said.



  • Canada - Manufacturing Sector Boosts Employment in May
  • Canadian Labour Market Finally Showing Signs of Slowdown
  • Unemployment rate unchanged in May, StatsCan says
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  • U.S. unemployment jumps to 5.5%
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