Canada’s employment gains modestly in July

Canada’s employment gained modestly in July. The country added 10.9k net jobs in the month. The jobless rate dropped to 6.3 percent from 6.5 percent, a level last seen in 2008, as fewer Canadians were engaged in the labor market, noted TD Economics.

This was the third consecutive month of full time job gains that rose 35.1k, while part-time work pulled back slightly. Gains were totally amongst self-employed individuals, as 2.4k net employees were shed. Both public and private sector employment were greatly unchanged.

Large swings were observed throughout industries. Among goods producers rose 1.9k and construction dropped 9.1k, while manufacturing and natural resources rose 13.7k and 8k. On the services side, trade, and information were among the gainers, while educational services and public administration saw notable declines.

Region wise, it was Ontario the led the gain, adding 25.5k net positions, while Alberta saw the largest drop in employment. Hours worked were encouraging, rising 1.9 percent year-on-year, the strongest rise in almost 2 years. Growth in the hourly wage rate rose slightly to 1.2 percent year-on-year.

The Bank of Canada has evidently hinted at a desire to further raise its policy rate from its current, emergency level, and today’s data would give more justification to do so.

“We remain of the view that a further 25bp hike is likely at their October meeting, with a more gradual pace of hikes expected thereafter”, added TD Economics.

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