Ottawa, August10 (FFN) – The Canadian economy experienced an unexpected decline in employment in July, largely due to a significant decrease in part-time jobs. Despite this, the unemployment rate held steady, contrary to analysts’ predictions of a rise. This update is based on a report from Reuters.
Statistics Canada reported a loss of 2,800 jobs in July, surprising economists who had anticipated job growth.
The decline in the labor market was mainly driven by the reduction in part-time positions, while full-time jobs saw an increase. However, the growth in full-time employment was not enough to counterbalance the losses in part-time work.
The unemployment rate remained unchanged at 6.4%, despite forecasts of an increase to 6.5%. This rate is the highest in 2.5 years, with the last peak occurring in January 2022 at 6.5%.
Analysts had expected a rise in unemployment to 6.5%, even with projected job creation, due to Canada’s rapid population growth, which the labor market has struggled to absorb. A significant number of people did not seek employment in July, contributing to the current labor market trends.
July was the second consecutive month of job losses. Economists believe that these figures could provide further reasons for the central bank to consider lowering interest rates again at its next meeting in September. The central bank had already reduced rates in June for the first time in over four years and again at its most recent meeting in late July.
Key Figures:
| Metric | July 2024 | June 2024 | January 2022 |
|---|---|---|---|
| Jobs Lost | 2,800 | – | – |
| Unemployment Rate (%) | 6.4 | 6.4 | 6.5 |
| Expected Unemployment Rate (%) | 6.5 | 6.4 | – |
This report underscores the ongoing challenges in Canada’s labor market, particularly in adapting to population growth and changes in employment patterns. The central bank’s upcoming decisions will be critical in shaping the country’s economic trajectory.
