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Canada sheds jobs for second month in a row, loses 31,000 jobs in July

August 05, 2022

Employment in Canada edged downward for the second consecutive month, Statistics Canada reported today. It was little changed in July and fell by 31,000 jobs when compared to June.

The agency noted tight labor market conditions over the past year called for a renewed focus on labor market churn — or the rate at which people are changing jobs or employment status — in Canada.

Economists had expected the economy to add about 15,000 jobs in July, CBC Reported.

The job gains in July were concentrated in the self-employed sector, where workers rose by 34,000. The number of public sector employees fell by 51,000 in July, the first decline in 12 months. The number of private sector employees remained little changed.

The Canadian unemployment rate held steady at 4.9% in July, matching the historic low reached in June.

At the industry level, jobs fell by 53,000 in the services-producing sector, with losses spread across several industries, including wholesale and retail trade, healthcare and social assistance, and educational services.

However, the goods-producing sector witnessed a growth of 23,000 jobs in July.

Statistics Canada reported average hourly wages for employees rose 5.2% year over year in July to C$31.14, matching the pace of wage growth recorded in June.

In Ontario, employment fell by 27,000 in July, with declines in full-time work partly offset by gains in part-time employment. Ontario’s unemployment rate rose to 5.3% in July from 5.1% in June.