Canada: 7,500 jobs lost in May, but the unemployment rate remained unchanged
The economy lost 7,500 jobs in May as a decline in full-time employment was only partially offset by an increase in part-time jobs, Statistics Canada said.
The agency reported the decline as the unemployment rate remained stable at 5.8 percent for the fourth month in a row.
Economists expected an increase of 17,500 jobs, according to Thomson Reuters Eikon.
“The May employment report was a bit weak, but the step back shows a rather tight labor market, with some upward wage pressure,” the senior economist at Bank of Montreal Robert wrote in a brief commentary. Kavcic.
Average hourly wages, a key indicator observed by the Bank of Canada, increased 3.9% from a year ago, the largest annual increase in monthly reading since April 2009.
“We are adding more strong indicators this week, and the Bank of Canada should be on the verge of raising rates next month and will have no further fallout on the trade front,” Kavcic wrote.
The overall decline in the number of jobs was when full-time jobs fell by 31,000, offset in part by a gain of 23,600 part-time positions.
The loss of jobs occurred while the health and social care sector lost 24,000 jobs, while the manufacturing sector lost 18,000. Construction employment decreased by 13,000.
The sectors that earned jobs included the lodging and catering services sector, which added 18,000 jobs, helped by the growth of British Columbia. The professional, scientific and technical services sector added 17,000 to an added 12,000 transportation and warehousing.
At the regional level, Prince Edward Island has added 800 jobs for the month, while employment in BC has fallen by 12,000 for the month.
In Quebec, a drop in full-time work was offset by a gain in part-time to leave the province little changed for the month. The Canadian statistics say there was virtually no change in the number of people working in Ontario.
