Canadian economy unexpectedly sheds 24200 jobs in July

The Canadian Press

"The July employment dip was softer than market expectations - but is still not really surprising", said Nathan Janzen, a senior economist with RBC Economics Research.

But on the flip side, Stats Can says last month's wage growth came in strong at 4.5 percent, its highest level in more than a decade. From last July to the present, wages have risen by 4.5 percent.

"Job growth so far this year has been wonderful, and the unemployment rate remains at near record lows".

The July unemployment rate remained near historic lows even after edging up to 5.7 per cent from 5.5 per cent in June.

The survey found the numbers were almost flat between May and July, a period that saw Canada add an average of 400 jobs per month. Yields on two-year Canadian government bonds were little changed.Weaker employment numbers may also stoke bets on Bank of Canada interest rate cuts, though accelerating wages should give the central bank pause when it comes to easing. The agency cautions, however, that the recent monthly readings have been small enough that they're within the margin of error and, therefore, statistically insignificant.

In comparison, Canada's unemployment rate increased slightly last month to 5.7 per cent.

"Overall, Canada's labour market performance was poor in July but this should be taken in context", reads the release.

Saskatchewan's economy lost 2,200 jobs in the month, StatCan reported, with the losses coming from full-time positions.

Employment fell in Alberta, Nova Scotia and New Brunswick, increased in Quebec and Prince Edward Island and was steady in the rest of the country.

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