Canada Loses -39k Jobs in July as Government Hires Wane

Canadian employment unexpectedly fell in July on fewer jobs in government and for youths, and wage growth declined to its slowest since 2011.

Employment fell by 39,400 last month, while the jobless rate rose to 7.2 percent from 7.1 percent, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg News projected a 10,000 job gain and an unchanged jobless rate, according to the median forecasts in surveys with 23 responses.

Canada’s job gains have slowed so far this year, with the average monthly gain of 6,000. That’s down from the 27,820 average recorded in the second half of last year. The job report adds to other evidence of an inconsistent expansion, including a record string of 18 monthly trade deficits, an economy that grew by a less than expected 0.2 percent in May and inflation holding below the central bank’s 2 percent target for more than a year.

“Obviously a disappointing release on the Canadian jobs front,” said Camilla Sutton, head of currency strategy at Scotiabank in Toronto. “It highlights some of the fundamentals in the economy, that things are very moderate and there is a lack of confidence.”

Bloomberg

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

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