MNI DATA IMPACT: Canada Job Market Weakens for Second Month>

By Greg Quinn and Jay Zhao-Murray

     Ottawa (MNI) - Canadian employment fell for a second straight 

month in July and the jobless rate moved further away from a record 

low, signs the labor market is joining a broader economic slowdown. 

     The 24,200 job decline for July missed the MNI economist median 

for a gain of 10,000, and adds to June's decrease of 2,200. It's the 

first time Canada has lost jobs for two straight months since the end of 

2014. 

     The unemployment rate rose for a second month, to 5.7% from 5.5% 

in June after hitting a record low of 5.4% in May. The MNI economist 

median was for no change in the jobless rate.

     Unemployment rose as companies dropped 11,600 full-time workers and 

12,600 part-time staff, and the labor force grew by 11,200, according to 

Statistics Canada figures published Friday in Ottawa. 

     The job market is fading along with the rest of the economy in the 

third quarter as companies face persistent risks from global trade 

disputes and consumers grapple with record debt loads. Investors are 

raising bets the Bank of Canada will cut interest rates around the end 

of this year as demand slows even further. 

     There is still some evidence the job market will help keep 

inflation near 2% and the economy won't need further stimulus. Wages for 

employees rose 4.5% in July from a year earlier, the fastest pace since 

2009. 

     The latest two job declines give back just part of the 134,200 

jobs that were created in the prior two months. 

     The year-over-year gain in hours worked also slowed to 0.7% in 

July from 1.8% in June. 

     The July job decline was the biggest since August 2018. The biggest 

reductions were in retailing, wholesaling and transportation. Losses 

were also concentrated in Canada's energy industry, with the province of 

Alberta and natural resource employment falling on the month. 

  --MNI Ottawa Bureau; tel: +1 613-314-9647; email: 

greg.quinn@marketnews.com 

     [TOPICS: M$C$$$,MACDS$,MAUDR$]