National unemployment rate rises to 6.2 per cent in June as full-time jobs fade

Colaa · 发表于 2008-7-11 08:17

By Julian Beltrame, The Canadian Press

OTTAWA - Canada's ability to churn out jobs in the face of slowing growth came abruptly to an end in June as the economy shed 5,000 jobs during the month, pumping up the unemployment rate one-tenth of a point to 6.2 per cent.

Statistics Canada said Friday that despite the retreat in June, Canada has produced 290,000 new jobs in the past 12 months, a 1.7 per cent increase.

However, the economy is clearly showing signs of weakening, following a modest 8,000 jobs gained last month. The last time employment fell in Canada was in December, when there were 19,000 fewer jobs than the previous month.

And the 5,000-job retreat doesn't tell the whole story, as the situation would have looked far bleaker if not for the addition of 34,200 part-time jobs.

There were 39,200 fewer full-time jobs in June, a clearer indicator of employment weakness.

Economists had forecast a slowdown in employment growth, but were still on average calling for an increase of 5,000 jobs.

"Reality may finally be catching up with the Canadian job market," said Douglas Porter, deputy chief economist with BMO Capital Markets.

"We wouldn't make too much of a one-month dip in employment. However, the jobless rate continues to gradually grind higher - now up 0.4 percentage points since its three-decade low at the start of the year - while full-time employment growth is clearly fading."

It was the second month in a row that full-time employment fell sharply, after a loss of 32,000 in May - a key indicator that the economy may be losing one of its key mainstays in averting a recession. Full-time employment has now fallen by 70,000 in the past four months.

Ontario, Canada's most populous province, was the hardest hit, with 45,500 fewer people fully employed in June than in May, although 21,600 more had part-time work.

With the jobs market weakening, Porter said it is likely that wage increases will moderate.

Wages continued to outstrip inflation in June, however, rising 4.4 per cent over last year and twice the rise in prices for goods and services.

The June jobs retreat was widespread among sectors, said Statistics Canada.

"The only industry with a notable employment increase in June was professional, scientific and technical services, where monthly gains totalled 37,000," the agency said.

But most industries lost jobs, including business, building and other support services, health care and social assistance, and construction.

While the troubled manufacturing sector was largely unaffected by further job losses in June, factory jobs were down 33,000, or 1.6 per cent, from a year ago, the agency said.

Not all regions of the country took part in the decline, however.

The oil-based Alberta economy continued to run hot, creating a record 10,000 new jobs in the month and pushing the province's employment rate to 72.2 per cent, also an all-time high.

Nova Scotia also had its best-ever employment rate, at 59.3 per cent after picking up 6,200 new jobs in June.

Eunice.kk · 发表于 2008-7-11 17:13

爱城一粒沙子 · 发表于 2008-7-12 20:11

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