Canada Job Creation Surges in July
August 10 2018 - 9:33AM
Dow Jones News
By Kim Mackrael
OTTAWA -- Job creation soared above expectations in July as
large gains in part-time, public sector positions helped nudge down
the unemployment rate.
The Canadian economy added a net 54,100 jobs in July on a
seasonally adjusted basis, Statistics Canada said Friday. Market
expectations were for a gain of 17,000 jobs, according to
economists at Royal Bank of Canada.
Canada's jobless rate, meanwhile, was 5.8% in July, down from 6%
in the previous month. Market expectations were for an unemployment
rate of 5.9%.
When using U.S. Labor Department methodology, Canada's jobless
rate in July was 4.8%, compared with a 3.9% jobless rate in the
U.S. In the 12 months to July 2018, the unemployment rate declined
by 0.5 percentage points in Canada and 0.4 percentage points in the
U.S., Statistics Canada said.
Friday's jobs report will likely add to speculation about a
possible Bank of Canada interest rate increase at the next policy
announcement in September. While many economists anticipate the
next rate rise to come in October, some believe September is
possible because of a recent spate of strong economic data.
The Bank of Canada has raised its benchmark rate four times
since mid-2017, most recently in July, bringing it to the current
level of 1.50%.
In July, average hourly wage growth advanced on a one-year basis
by 3.2%, marking the seventh straight month the metric has moved up
at a pace of 3% or higher.
The number of part-time jobs increased by 82,000 in July, while
the number of full-time positions fell by 28,000. The public sector
added 49,600 positions and the private sector gained 5,200 jobs.
The number of workers who are self-employed -- usually independent
contractors or freelancers -- contracted slightly in the month.
July's jobs gains were largely concentrated in
services-producing industries, including education and health care
and social assistance, Statistics Canada said. Employment in most
goods-producing industries declined in July, with the biggest drops
recorded in manufacturing, construction and natural resources.
Write to Kim Mackrael at kim.mackrael@wsj.com
(END) Dow Jones Newswires
August 10, 2018 09:18 ET (13:18 GMT)
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