Calgary’s jobless rate rises slightly to 7.9 per cent

Calgary’s unemployment figure, trend a contrast to nation’s 40-year low mark

Although Canada’s unemployment rate dropped to a four-decade low last month, Calgary’s jobless rate remains stubbornly high at 7.9 per cent, according to the latest numbers from Statistics Canada.

The July jobless rate for the country was 5.8 per cent, down from six per cent the previous month, Statistics Canada said Friday in its latest labour force survey.

At the same time, employment in Alberta held steady, as a decrease in full-time work was largely offset by an increase in the number of people working part time.

The unemployment rate for the province rose 0.2 per cent, from 6.5 to 6.7 per cent.

The gap shows the national average unemployment rate is almost one per cent lower than Alberta.

When compared to neighbouring provinces, British Columbia’s unemployment rate dropped to five per cent and Saskatchewan is also lower at 6.6 per cent, despite a 0.3 per cent increase.

Calgary’s rate increased slightly from 7.7 per cent to 7.9 per cent. Edmonton’s jobless rate fell from 6.6 per cent to 6.5 per cent.

Nationally, a rush of new parttime jobs offset a drop in full-time work last month to help the economy

post a net gain of 54,100 positions and drop the unemployment rate to the four-decade low.

However, the details of the report revealed weaker data underneath the bigger-picture improvements.

The country gained 82,000 parttime positions last month — and it lost 28,000 full-time jobs.

A closer look at the numbers also showed the public sector made the biggest contribution to the July increase, with 49,600 new jobs, while the private sector added 5,200 positions.

The agency said average hourly

wage growth, which is closely monitored by the Bank of Canada, continued its gradual slide last month, to 3.2 per cent, after expanding 3.6 per cent in June and 3.9 per cent in May.

The total number of hours worked in July expanded 1.3 per

cent, a slightly slower pace than the June reading of 1.4 per cent.

“In the wacky world of Canada’s monthly employment numbers, July came up with another head scratcher, with some big headlines, but some disappointments in the fine print,” CIBC chief economist Avery Shenfeld wrote Friday in a research note to clients.

Shenfeld added that there are “lots of reasons to question just how good the data really are here.”

Still, overall, he said the report contained a “good” set of numbers that will keep markets guessing whether the Bank of Canada will introduce its next interest rate hike in September or October.

Compared with a year earlier, overall employment was up 1.3 per cent following the addition of 245,900 jobs, for an increase driven by 210,500 new full-time positions.

By industry, the services sector saw the biggest gains last month,

with a combined net increase of 90,500 jobs, which was led by 36,500 new positions in education and 30,700 in health care and social assistance. More women between the ages of 25 and 54 were working in July, as the category saw a gain of 30,300 jobs.

The youth unemployment rate fell to 11.1 per cent, down from 11.7 per cent in June.

Compared with a year earlier, overall employment was up 1.3percent following the addition of 245,900 jobs.

OTT A WA The economy generated 54,100 net new jobs last month and saw its unemployment rate fall — but the headline improvements overshadowed weaker details: a rush of new part-time, public sector positions and a drop in fulltime work.

The overall July increase in jobs pushed the unemployment rate back to its four-decade low of 5.8 per cent, down from six per cent the previous month, Statistics Canada’s latest labour force survey said Friday.

But a closer look at the numbers revealed that the country gained 82,000 less desirable, part-time positions last month — and it lost 28,000 full-time jobs. The public sector made the biggest contribution to the July increase with 49,600 new jobs, while the private sector added 5,200 positions.

Average hourly wage growth, which is scrutinized by the Bank of Canada, continued its gradual cooloff last month with a year-over-year reading of 3.2 per cent. In June, it expanded 3.6 per cent and in May the figure was 3.9 per cent, which marked a nine-year high.

The total number of hours worked in July expanded 1.3 per cent, a slightly slower pace than the June reading of 1.4 per cent.

“In the wacky world of Canada’s monthly employment numbers, July came up with another head scratcher, with some big headlines but some disappointments in the fine print,” CIBC chief economist Avery Shenfeld wrote Friday in a research note to clients.

Shenfeld added that there are “lots of reasons to question just how good the data really are here.”

But overall he said the report contained a “good” set of numbers that will keep markets guessing whether the Bank of Canada will introduce its next interest rate hike in September or October. CIBC predicts the next rate increase will land in October as the central bank continues to proceed cautiously along its rate-hiking path.

Bank of Montreal chief economist Douglas Porter also wrote about the jobs numbers in a research note: “Today’s job report is a classic case of ‘nice headlines, shame about the details.’ While we would still give the overall result a passing grade, it’s tough to get overly enthusiastic.”

By industry, the goods-producing sector lost 36,500 jobs in July, with a notable loss of 18,400 positions in manufacturing and a drop of 12,300 in construction.

The services sector saw strong gains last month with a combined net increase of 90,500 jobs, which was led by 30,700 positions in health care and social assistance as well as 36,500 in education.

Both Shenfeld and Porter underlined those big gains in education as signs the July numbers are likely weaker than they look at first glance. Porter noted that, in the past, summertime education employment boosts have often been reversed in the ensuing months.

National Bank of Canada chief economist Stefane Marion wrote in a report Friday that the public sector is the “only game in town” so far in 2018. Marion’s research note was titled: “Where are the private sector jobs?”

Across the provinces, Ontario gained 60,600 jobs — all in parttime work — and the unemployment rate dropped 0.5 percentage points to 5.4 per cent for its lowest reading since July 2000. The education jobs fuelled much of the gain in Ontario, Statistics Canada said.

Employment also rose in British Columbia and Newfoundland and Labrador, while Saskatchewan and Manitoba lost jobs last month.

More women between the ages of 25 and 54 years old were working in July as the category saw a gain of 30,300 jobs.