Monday, 20 August, 2018

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

'Another head scratcher': ​Canada adds 54100 jobs in July Montreal unemployment rate inches up in July
Russell Knight | 13 August, 2018, 02:00

Despite that growth in the job market, only an estimated 200 jobs were added since end of July 2017.

From June to July Manitoba's unemployment rate held at six per cent, while the national unemployment rate declined.

Nationally, employment rose by 54,000 in July, with the unemploymet rate dropping slightly to 5.8 per cent.

"Still, the labour market remains at or near full employment, and will do its part to justify a Bank of Canada rate hike in the months ahead", he added.

According to the latest Statistics Canada report, unemployment rates for the region that houses Lloydminster increased by 0.1 per cent for July.

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The jobless rate had been 5.8 percent from February through May, the lowest since the current method of calculating unemployment was introduced in 1976, before edging up to 6.0 percent in June. Camrose-Drumheller is sitting at an unemployment rate of 4.5 per cent up from June's 4.4 per cent.

"In the wacky world of Canada's monthly employment numbers, July came up with another head scratcher, with some big headlines but some disappointments in the fine print. there are lots of reasons to question just how good the data really are here", said Avery Shenfeld, chief economist at CIBC Economics.

The gap shows the national average unemployment rate is nearly one per cent lower than Alberta. Employment in the goods-producing sector fell by 36,500 jobs, mostly in manufacturing, while the services sector gained a net 90,500 positions, the majority in education and health care.

"While a big increase in jobs brings this series more in line with what we've seen from other indicators this year, the details leave us somewhat skeptical that the move won't be at least partly reversed in August", he said in a research note.

On a year-over-year basis, employment rose by 245,900 jobs, or 1.3 percent. 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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