Employment fell by 7,400, the unemployment rate also rose less than expected, to 8.6 percent from 8.4 percent in May, the highest since February 1998, Statistics Canada said today.
The report is the fourth this week to suggest a recession that began at the end of last year is easing. Finance Minister Jim Flaherty and Bank of Canada Governor Mark Carney have said the job market would continue to worsen this year because companies are reluctant to expand.
Manufacturers fired 25,700 workers in June, and have slashed 11 percent of their workforce since October. Retailers and wholesalers cut another 17,100 staff.
Information, culture and recreation companies added 26,200 workers, and finance, insurance and real estate companies hired another 20,500 people.
Total full-time employment fell by 47,500 positions in June, Statistics Canada said, while part-time jobs increased by 40,100.
The job market will probably weaken for the rest of the year, according to economists surveyed by Bloomberg News. Automotive workers are among the hardest hit, as the bankruptcies of Chrysler Group LLC and General Motors Corp. slowed production, led to dealership closures and shuttered parts suppliers.
The smaller-than-expected job loss follows a U.S. report of a decline in payrolls of 467,000 for June, according to Labor Department figures. The U.S. jobless rate rose to 9.5 percent, the highest since August 1983, from 9.4 percent.