A worker walks on a construction site in Hamilton, Ont., on November 14, 2013. THE CANADIAN PRESS/Aaron Lynett

Surge in part-time work offsets full-time losses, helps drops unemployment rate

A rush of new part-time jobs offset a drop in full-time work last month to help Canada post a net gain of 54,100 positions and drop the national unemployment rate down to a four-decade low.

A rush of new part-time 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 a four-decade low.

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

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

The country gained 82,000 less desirable, part-time 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.

Related: Economy adds 31,800 jobs in June, unemployment rate rises to 6.0%

Related: Best B.C. cities to live in: millennial edition

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. CIBC predicts the next rate increase will land in 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.

Overall, 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.

Across the provinces, Ontario gained 60,600 jobs — all in part-time work — and the unemployment rate dropped 0.5 percentage points to 5.4 per cent for its lowest reading since July 2000.

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.

The youth unemployment rate — representing workers aged 15 to 24 years old — fell to 11.1 per cent, down from 11.7 per cent in June. The report said the main cause of the drop was due to the fact fewer young people were looking for work.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Councillor criticizes board overseeing wastewater treatment project

Coun. Judy Brownoff accuses project board of ignoring public input

Saanich council clears path for new daycare facility

Creation of subdivision allows funding agreement for 49 new daycare spaces

Winter winds to taper off for Christmas Day

Break of active stormy weather predicted for Greater Victoria

Mackenzie Interchange pump failure sends contaminated water into Colquitz River

Sediment release in salmon-bearing river a serious threat to aquatic life, says local activist

WATCH: Booze, weed both have fatal consequences

Video shows how easily impairment affects driving

Santa visits some of Victoria General Hospital’s littlest patients

Santa flew in to the hospital via air ambulance helicopter

READER POLL: Do you have turkey or ham for Christmas dinner?

What are you having for Christmas dinner? Canadians gobbled up 3.3 million… Continue reading

Canadian detained in China, not clear if related to two other detentions

Reports suggest the person is not a diplomat or entrepreneur doing business in China.

Greater Victoria Crime Stoppers wanted list for the week of Dec. 18, 2018

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Trudeau sees 2019 election as choice between positive Liberals, divisive Tories

Trudeau is drawing much the same battle lines that propelled the Liberals to a come-from-behind victory in 2015

Snowfall warning issued for Coquihalla, Highway 3

Make sure to equip winter tires if travelling

Lightning top Canucks 5-2 in feisty battle

NHL’s No. 1 team too much for Vancouver

Bear cubs try to take Vancouver Island woman’s Christmas cookies

Incident happened in the early-morning hours today, Dec. 18, in Nanaimo

FortisBC says you can return to normal gas use following pipeline fire

Utility says increased pipeline capacity, warmer weather have allowed supply to reach normal levels

Most Read