Canada loses jobs first time this year

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. Economists surveyed by Bloomberg predicted 12,500 new jobs and a jobless rate of 7.9 percent, according to the median of 22 estimates.

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 grew at a 6.1 percent annualized first- quarter pace. Canada “is recovering, although we aren’t out of the woods yet,” Finance Minister Jim Flaherty told reporters yesterday in Ottawa.

Bloomberg

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