Canada adds 54100 jobs in July, unemployment rate falls to 5.8%

'Another head scratcher': ​Canada adds 54100 jobs in July

Montreal unemployment rate inches up in July

The decline in the number of people working in Ottawa-Gatineau came despite a spike in government employment.

Meanwhile, the closely watched tech sector collectively shed 2,800 employees.

While the Canadian unemployment rate dropped to a four-decade low at 5.8% in July, the resource sector actually gave up jobs during the same month says Statistics Canada in its Labour Force Survey released today.

The public sector added 49,600 new jobs while the private sector added 5,200 positions, the data showed.

The national average saw a 0.2 per cent change from last month's figures as well - but in the opposite direction. Wage gains slowed during the month, with average hourly wages up 3.2 per cent from a year ago.

Despite that growth in the job market, only an estimated 200 jobs were added since end of July 2017. Compared to last July, 246,000 more people are working across the country, an increase of 1.3 per cent. CIBC predicts the next rate increase will land in October as the central bank continues to proceed cautiously along its rate-hiking path. Employment in the goods-producing sector fell by 36,500 jobs, mostly in manufacturing, while the services sector gained a net 90,500 positions, the majority in education and health care.

"Still, the labour market remains at or near full employment, and will do its part to justify a Bank of Canada rate hike in the months ahead", he added.

The city saw its unemployment percentage increase from 5.8 per cent in June to 6 per cent in July.

Most of the new jobs went to women and were concentrated in three provinces: British Columbia, Ontario and Newfoundland. The report said the main cause of the drop was due to the fact fewer young people were looking for work.

Compared with a year earlier, overall employment was up 1.3 per cent following the addition of 245,900 jobs for an increase driven by 210,500 new full-time positions.

"Ontario's share of paid employment in Canada [is] at roughly 39% in 2018, an increase compared to previous year".

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