UPDATE 2-Sluggish Canada jobs market stalls in June, fewer seek work

Fri Jul 8, 2016 9:30am EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Adds analyst reaction, details, background)

By David Ljunggren

OTTAWA, July 8 (Reuters) - Canada's already-sluggish jobs market stalled in June, when the economy shed 700 positions, but the number of people seeking work also fell, and the unemployment rate edged down to an 11-month low of 6.8 percent.

Analysts polled by Reuters had forecast a gain of 5,000 positions, and expected the jobless rate to rise to 7.0 percent from 6.9 percent in May. The unemployment rate last hit 6.8 percent in July 2015.

The Statistics Canada data released on Friday underlined the challenges facing an economy trying to adjust to weak oil prices that have depressed demand and led to layoffs in the energy industry. The labor participation rate dropped to 65.5 percent, the lowest since December 1999.

Full-time positions dropped by 40,100 while part-time jobs rose by 39,400. The construction and manufacturing sectors lost 28,700 and 12,900 jobs respectively while accommodation and food services grew by 20,200 positions.

"It feels like it's a fairly weak report befitting conditions in the wider economy ... full-time hiring was weak so that's something that stands out as an additional source of concern," said David Tulk, chief Canada macro strategist at TD Securities.

The Canadian dollar weakened slightly after the data was released. Separately, a report showed U.S. job growth surged in June as manufacturing employment increased.

In the 12 months to June, the number of people employed edged up by 107,600, or 0.6 percent, with the majority of gains in part-time work. The six-month average for employment growth was 7,300 jobs, down from 11,200 in May.   Continued...