A slump in this summer's job market continues to mar the West Coast economy.
The province shed 15,700 jobs last month after losing 16,300 in July, according to Friday data from Statistics Canada.
The losses pushed the province’s unemployment rate up 0.3 percentage points to 6.2 per cent—still better than the national unemployment rate of 7.1 per cent (up 0.2 percentage points from July) as the broader economy lost 66,000 jobs.
B.C. lost 9,300 full-time positions and 6,400 part-time positions.
Losses were concentrated in health care (-10,400 jobs), education (-10,500 jobs) and information/culture/recreation (-16,500 jobs), the latter category being the one tied to the film and TV sector.
Meanwhile, construction held strong, adding 11,400 jobs in August.
BMO chief economist Douglas Porter highlighted B.C. as one of the provinces falling victim to the “trade war fallout” going on with the U.S.
“The start of the trade war can be traced back to late January, and the economy has now lost a cumulative 38,500 jobs on net in those seven months,” he said in a note, referring to national job losses.
“All told, this weak report fully reinforces any bias for the [Bank of Canada] to ease somewhat further here, but inflation hasn’t quite given them the all-clear.”
But CIBC senior economist Andrew Grantham said recent losses have not been driven solely by sectors most sensitive to American tariffs.
He said in a note that he expects the central bank to cut its key rate when it makes its next interest rate announcement Sept. 17.
TD senior economist Leslie Preston said the August employment numbers support the Bank of Canada's characterization of "an excess supply of labour" as noted in its July monetary policy report.
“However, it hasn't yet prompted them to lower rates beyond the pre-emptive cuts made early in the year. Markets are now putting odds on the next cut coming in September,” she said in a note, adding economists at the bank have long expected two more cuts coming this year.
Preston said the Sept. 16 inflation report from Statistics Canada will likely solidify the exact timing of the next rate cut.
