Published: Mon, August 13, 2018
Economy | By

Canada's job surge beats expectations, but there is a catch

Canada's job surge beats expectations, but there is a catch

In Alberta, unemployment held steady with a rate of 6.7 per cent up from June's 6.5 per cent.

Employment rose by 54,000 last month driven by gains in part-time work.

Meanwhile, TD senior economist Brian DePratto said in a separate note that the latest job numbers indicate a quarter-point rate hike from the central bank are likely to come in October.

Statistics Canada says the rate for the economic region that stretches from Banff to Peace River was six per cent in July, down from 6.7 per cent the month before.

The Capital Region's jobless rate ticked up slighting to 4.5 per cent in July, from the 4.4 per cent it stood at in June, Statistics Canada has reported.

In total there were 34,700 who were unemployed in July, up from 34,400 in June.

82,000 part-time jobs were created and that helped offset a loss of 28,000 full-time jobs.

Porter, however, maintained the national labour market remains robust and wrote there is "easily enough here" to convince the Bank of Canada to keep on track in gradually tightening its key interest rate.

In contrast, employment fell in most goods-producing sectors, specifically manufacturing, construction and natural resources.

Average hourly wage growth, which is scrutinized by the Bank of Canada, continued its gradual cool-off last month with a year-over-year reading of 3.2 per cent.

By industry, the services sector saw the biggest gains last month with a combined net increase of 90,500 jobs, which was led by 36,500 new positions in education and 30,700 in health care and social assistance.

The Bank of Canada has raised rates four times over the a year ago as the economy strengthened and says further tightening will be data dependent. The report said the main cause of the drop was due to the fact fewer young people were looking for work.

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