Analysis:Canada Jobs +10.9k;Unemp Rate 6.3%,Lowst Since Oct'08>

By Yali N'Diaye

     Ottawa (MNI) - The Canadian economy added 10,900 jobs in July, 

roughly as expected by analysts, marking the eighth consecutive month of 

increase, data from Statistics Canada showed Friday. 

     The unemployment rate fell 0.2 percentage points to 6.3%, its 

lowest level since October 2008, as fewer people searched for work, with 

a participation rate of 65.7%, down from 65.9% in June. 

     Analysts in a MNI survey had expected employment to rise 10,000, 

and the unemployment rate to remain stable at 6.5%. 

     The July gain was led by full-time jobs, which were up 35,100 in a 

further sign of businesses' confidence in the future. 

     Part-time employment fell 24,300 in July. 

     Since the beginning of the year, the Canadian economy has added 

28,100 jobs on average per month, compared to 5,500 over the same period 

last year. 

     The details show a rotation from part-time to full-time. The 

average monthly full-time gain since the beginning of 2017 is 32,600, 

compared with a decline of 4,500 for part-time. Between January and July 

2016, the economy shed 7,400 full-time jobs per month on average, while 

adding 12,900 part-time positions. 

     On a sector basis, July's gains were led by services, where 

employment rose 9,000 as a result of diverging trends, while 

goods-producing industries added 1,900 jobs. 

     The manufacturing sector added 13,700 and natural resources 8,000. 

     In services, trade added 21,900 and information, culture and 

recreation 18,300. Educational services was down 32,000 and public 

administration down 10,300. 

     Hours worked rose 1.9% year-over-year, picking up from 1.4% in 

June. 

     Average weekly wages also picked up, posting a 1.4% gain on the 

year after rising 1.1% in June. 

     The combination of further full-time employment and wage growth 

improvement is making it easier for the Bank of Canada to justify a 

further rate hike to finally take out the 50 basis point "insurance" 

provided in 2015. 

     On the downside, private-sector jobs were down 3,200 and the number 

of employees down 2,400, while self-employed rose 13,200. 

--MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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