Unemployment rate holds at 6.4% in July as jobs market ‘little changed’ – National
Canada’s unemployment rate held firm at 6.4 per cent in July amid a relatively steady month in the labour market.
Statistics Canada said Friday that total employment was “little changed” last month. Some 2,800 jobs were lost in July, the agency said.
That marks the second consecutive month of job losses for Canada after net 1,400 positions were lost in June. But overall, employment is still higher by around 346,000 positions year-over-year.
Employers have slowed their hiring paces as Canada’s economy cools, with the unemployment rate rising largely due to strong population growth rather than widespread layoffs.
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Two interest rate cuts into an easing cycle, the Bank of Canada says it’s watching for signs of slowing wage growth as it looks for confidence inflation is heading back to two per cent.
Average hourly wages were up 5.2 per cent year-over-year in July, easing from a rate of 5.4 per cent in June.
The wholesale and retail trade industry led job losses last month, shedding 44,000 positions, followed by the finance, insurance and real estate sector, down 15,000 positions. Offsetting those losses were new hires in public administration, transportation and warehousing and utilities sector.
Women and men aged 55-64 both saw a drop in employment, shedding 41,000 and 15,000 jobs, respectively. Young men aged 15-24 also faced job losses in the month (down 20,000 positions), while core aged men between 25 and 54 years old saw a jump (up 48,000 positions).
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