Employment fell by 44,500, the third straight decline, Statistics Canada said. The jobless rate remained at an 11-year high of 8.6 percent as the labor force shrank.
Prime Minister Stephen Harper and Bank of Canada Governor Mark Carney have said the country’s job market will continue to worsen this year, even as Canada’s first recession since 1992 is expected to ease. The central bank cut its key interest rate to a record low 0.25 percent and the government predicts a record budget deficit as they act to revive the economy.
Construction employment fell by 17,800 in July, while accommodation and food service companies fired 22,200 workers. Information, culture and recreation employment declined by 10,600.
The job losses were concentrated in the full-time, private- sector jobs that economists focus on as a measure of the labor market’s strength.
Full-time employment fell by 29,100 positions, Statistics Canada said, while part-time jobs decreased 15,400. The number of employees at private companies fell by 74,900, while government employment dropped 4,400 and self-employment rose by 34,800.
Manufacturing employment fell by another 6,500 in July, bringing the total loss since October to 218,000, or 11 percent, Statistics Canada said.
Automotive workers have been among the hardest hit, as the bankruptcies of Chrysler Group LLC and General Motors Corp. led to slower production, dealership closures and shuttered parts suppliers.