MNI 5 THINGS: Canada Aug Jobs Disappoint, Wage Growth Slows>

--5 Things We Learned From Canadian Labor Force Survey Data

By Yali N'Diaye

     OTTAWA (MNI) - The following are the key points from the August 

data on the Canadian Labor Force Survey released Friday by Statistics 

Canada: 

     - The Canadian economy shed 51,600 jobs in August, nearly erasing 

the 54,100 gain recorded in July. The unemployment rate increased 0.2 

percentage points on the month to 6.0%. Analysts in a MNI survey had 

expected employment to be flat in August with the unemployment rate 

remaining steady at 5.8%. The participation rate edged down to 65.3% 

from 65.4%. 

     - Friday's report showed that upward pressure on wages further 

subsided in August, as the average hourly wage growth for permanent 

workers slowed to 2.6% year-over-year, the smallest increase since 

October 2017, and the third monthly slowdown. Wages grew 3.0% in July, 

3.5% in June, and 3.9% in May. The Bank of Canada keeps a close eye on 

wage growth, with Labor Force Survey data only representing a small 

component of the wage-common measure used by the central bank to assess 

underlying wage pressures. The BOC estimates that underlying wage growth 

was 2.5% in the second quarter, while it should be closer to 3.0% in an 

economy operating close to capacity. 

     - While details were generally weak, full-time employment, 

indicating a greater business confidence than part-time, managed to 

increase 40,400 on the month, more than offsetting July's 28,000 drop. 

Part-time, on the other hand, fell 92,000. Year-to-date, full-time 

employment is up 97,300, for a monthly average gain of 12,200. 

Meanwhile, the economy shed 111,900 part-time jobs between January and 

August, which is 14,000 on average per month. Of note, the share of 

part-time workers for involuntary reasons decreased to 24.2%, down from 

26.0% in August 2017. 

     - Job losses were spread across the public (-38,000) and the 

private (-30,700) sectors, as well as goods-producing industries 

(-30,400) and services (-21,200). Within goods industries, employment 

fell 16,400 in construction and 9,200 in manufacturing. Within services, 

losses were particularly concentrated in professional, scientific and 

technical services, where employment dropped 22,100, the largest decline 

since February 2012. Wholesale and retail trade jobs were down 19,600. 

Year-to-date, private sector employment is down 73,600, led by 

goods-producing industries (-70,100). 

     - Details at the national level closely reflected trends in 

Ontario, where employment fell -80,100, concentrated in part-time 

positions (-80,700). Manufacturing fell 1,200 and construction 8,800. 

Goods industries were down 8,600 and services down 71,500. 

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

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