MNI 5 THINGS:Canada Jobs Disappoint But Wage Grwth Accelerates>

--Participation Rate Lowest Since October 1998

By Yali N'Diaye

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

on the Canadian Labor Force Survey released Friday by Statistics Canada: 

     - The economy shed a further 7,500 jobs in May, while analysts in a 

MNI survey had expected a 20,000 gain. Unlike April, full-time 

employment declined in May, with 31,000 positions lost. Part-time 

employment rose 23,600. Details of the report were weaker than in April, 

although there were some positives. 

     - A key take away from the report was the further acceleration of 

the average hourly wage growth for permanent workers to 3.9% 

year-over-year from 3.3% in April, an increase that was last matched in 

July 2012 and last surpassed in April 2009. The minimum wage was 

increased by 75 cents to C$12 per hour on May 1 in the province of 

Quebec, after Ontario raised its minimum wage in January, which is 

contributing to year-over-year gains. 

     - While the unemployment rate was stable at 5.8%, the participation 

rate was down 0.1 percentage point to 65.3%, the lowest since October 

1998. In addition, part-time workers for involuntary reasons was 22.5% 

of total part-time, up from 22.1% in April. However, the share was still 

down from 25.3% in May 2017. 

     - Employment gains were led by the public sector (+12,900), while 

the private sector shed 4,800 jobs. 

     - The split was mixed on a sector basis, with employment down 

29,000 for the goods-producing industries, the largest decrease since 

June 2016. In particular, manufacturing fell 18,300, the largest drop 

since March 2016. Services, on the other hand, rose 21,500, led by 

professional, scientific and technical services, transportation and 

warehousing, and finance, insurance, real estate, rental and leasing. 

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

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