Canadian economy sheds 30,000 jobs, unemployment rate climbs to 7.3 per cent
(Reuters) — Canada’s economy economy unexpectedly lost 30,400 jobs in July in a third disappointing month for the labour market, suggesting the central bank will stay on the sidelines for longer as growth fails to gain momentum.
The net job losses resulted from the elimination of 51,600 part-time positions, which overshadowed the 21,300 full-time jobs created, according to Statistics Canada data on Friday.
There was little change in both public and private sector employment.
The jobless rate climbed to 7.3 per cent from 7.2 per cent, with the biggest layoffs in wholesale and retail trade and in professional, scientific and technical services.
The market had expected some 9,000 jobs to be created in July after mediocre gains of 7,300 in June and 7,700 in May.
In the year to July, employment increased by 139,200, mainly due to full-time jobs.
Bank of Canada Governor Mark Carney argued the case for raising interest rates in an interview with the BBC in London on Wednesday but most analysts don't expect him to make a move until the third quarter of next year.