Canadian employment fell 30,400 in July, defying expectations for a 6,000 job gain. Statistics Canada this morning also reported that July's decline was concentrated in part-time employment; full-time jobs increased by 21,300
The unemployment rate inched back up to 7.3% from 7.2% in June, as the labour force declined by just 7,800. The nation's number-crunchers also said the rate of employment among students aged 20 to 24 rose to 70.4%, little changed from previous two summers.
The pace of job creation clearly slowed in the period from May through July, however, this followed very large increases in April and March and on balance the average monthly gain in employment so far this year was 17,800. While the volatility in the monthly employment data has been high since the recession ended, the recent slowing has raised concerns that the tumultuous global backdrop is weighing on Canadian business confidence and making them more hesitant about adding new workers.
That being said, overall conditions in Canada's labour market are consistent with the economy's growth rate which has been running at 1.9% in recent quarters. Experts at the Royal Bank maintain that steady domestic demand will work to counter some of the negative fallout from Europe's painful crisis that has created downside risks for the global economy and, in turn, demand for Canadian exports.
