Canada Jobless Rate Hits 8-Month High of 6.0%



The unemployment rate in Canada rose to 6.0 percent in June 2018 from 5.8 percent in the previous month and compared with market expectations of 5.8 percent. It was the highest jobless rate since October, mainly as labor force grew by nearly 76 thousand, the biggest monthly increase in six years. The economy added 31.8 thousand jobs in June, after shedding 7.5 thousand in May and beating market expectations of 24 thousand, mostly part-time jobs (+22.7 thousand). Meantime, full-time positions were up by 9.1 thousand.

Employment increased in Ontario (+35,000), Saskatchewan (+8,300), and Manitoba (+4,100). There was little change in the other provinces.

More people were employed in goods producing industries (+46,600), mainly in construction (+27,200), natural resources (+12,900) and manufacturing (+11,300) while jobs were shed in agriculture (-6100). Meanwhile, employment fell at service producing industries (-14,700), mostly in accommodation and food services (-15,900) and wholesale and retail trade (-14,000).

The number of public sector employees increased (+11,800) and self-employed also rose (+22,000) while the number of private sector employees decreased (-2,000).

In June, employment rose for men aged 55 and older (+13,000), while it held steady for the other demographic groups. 

The labor force participation rate increased to 65.5 percent from 65.3 percent in May, mainly reflecting higher youth participation. In fact, the number of people aged 15 to 24 in the labor force went up by 27,400, rising the participation rate of that group to 64 percent from 63.4 percent in May. This led youth unemployment rate to increase to 11.7 per cent in June, up from 11.1 in May.

Canada Jobless Rate Hits 8-Month High of 6.0%


Statistics Canada | Luisa Carvalho | luisa.carvalho@tradingeconomics.com
7/6/2018 2:37:29 PM