British Columbia’s unemployment rate increased to 6.0% in July from 5.8% the previous month, Statistics Canada announced August 7.
Approximately 15,700 full-time positions were lost in the province during the month. A gain of 15,200 part-time jobs almost offset this loss but the unemployment rate still grew as the labour force increased by more than 10,000 individuals.
Across the country, the unemployment rate remained at 6.8% for the sixth consecutive month. The country gained 6,600 jobs consisting of an increase of 23,900 part-time jobs offset by a loss of 17,300 full-time positions.
BMO economist chief economist Douglas Porter said this latest employment report is “mixed, but not in recession terrain.”
“Make no mistake: this is not a strong report, but it’s also not notably weak,” Porter said in a note to investors. “While many have been quick to label this year’s economic performance a recession, the job numbers just haven’t backed that up.”
The biggest increase was found in business, building and other support services, where 18,900 jobs were added. This was followed by educational services (up 9,400) and public administration (up 9,000). Professional, scientific and technical services saw the country’s biggest job loss in July as more than 10,000 positions were shed. Construction (down 8,300) and health care and social assistance (down 7,800) also saw some of the country’s biggest losses.
Year-over-year, Canada gained over 161,000 jobs. There was an increase of around 255,000 full-time positions while 94,000 part-time jobs were lost.
On the same day StatsCan released its numbers, job figures from the United States were also announced. The U.S. gained 215,000 jobs in July and its unemployment rate held at 5.3%. The U.S. Federal Reserve System had said it was looking for “some further improvement in the labour market” which would trigger a rate hike in September. Analysts are saying this may be the news the Fed was looking for.
Meanwhile, on this side of the border, today’s news likely isn’t enough for Canada’s central bank to change its overnight rate, Porter said.
“We don’t believe the Canadian results move the needle for the Bank of Canada and we see them on hold the rest of the year,” he said. “That stands in stark contrast to a Fed that looks increasingly ready to start hiking, with a September lift-off still very much in play.
“Not a helpful combination for the listing loonie, especially with oil prices revisiting their lows.”
TD Economics’ Randall Bartlett said overall, the economy is evolving according to the Bank of Canada’s expectations and said the rate will likely stay unchanged until mid-2017.
The Canadian dollar reacted to the jobs announcements by immediately dropping more than half a cent to 75.88 cents U.S., but as of press time the loonie had rebounded somewhat to 76.35 cents U.S.
