July jobless rate remains unchanged at 8.6 per cent as more people leave workforce
July saw another 45,000 job losses in Canada, about three times higher than economists had predicted, according to Statistics Canada's labour force survey.
However, with fewer people in the labour market, the unemployment rate was unchanged from June at 8.6 per cent.
Despite signs the economy is improving, including predictions from the Bank of Canada that the recession will end in the second half of 2009 and a rebounding housing market, employment, considered a lagging economic indicator, is not bouncing back.
Since last October, the economy has shed a net total of 414,000 jobs. Most of July's job losses occurred in accommodation, food and construction. The private sector was hit hardest with 75,000 jobs lost.
Losses were only partially offset by increases in retail and wholesale trade. Self-employment also grew by 35,000, but economists caution self-employment is often a last resort that highlights the lack of opportunity in the formal job market.
The majority of job losses occurred in Quebec (37,000), but Saskatchewan (5,000) and Newfoundland and Labrador (2,800) also had losses. Young people aged 15 to 24 and women aged 25 to 54 were most affected by the losses with 38,000 and 23,000 jobs lost, respectively.
In the United States, the pace of job losses slowed in July more than economists had predicted and the unemployment rate dropped for the first time since April 2008.
The U.S. lost 247,000 jobs, compared to 443,000 job losses in June, and the unemployment rate dropped to 9.4 per cent from 9.5 per cent, according to the U.S. Labour Department.
