Canada Unexpectedly Lost Jobs in July

Canada unexpectedly lost jobs in July and the country’s unemployment rate increased because of a drop in full-time jobs at schools and in the finance industry.

Employment fell by 9,300 jobs in July, the first decline this year, following a 93,200 increase in June, Statistics Canada said today in Ottawa. The jobless rate rose to 8 percent, from 7.9 percent.

Canada’s economic growth is slowing this quarter to about half the pace in the first three months of the year when low mortgage rates and temporary tax credits sparked spending, according to the Bank of Canada. The central bank last month said the risks to the recovery are elevated” in part because consumer spending could slow more than expected.

Canada’s economy has created 393,700 jobs since July 2009.

Full-time employment decreased by 139,000 in July, partly offset by a 129,700 increase in part-time jobs. Employment in educational services fell 65,300, and jobs in finance, insurance, real estate and leasing were down 29,800.

Jobs in public administration were up by 18,700.

Average hourly wages rose 2.2 percent in July from a year ago, Statistics Canada said in the report. That’s up from an annual pace of 1.7 percent in June.

Payroll employment fell by 5,200 in July, and self- employment dropped 4,200, the agency said.

Canada Unexpectedly Lost Jobs in July, Bloomberg
8/6/2010 9:47:38 AM