"The Canadian job market remains mired deep in a mid-cycle funk, with precious little employment growth over the past year"
- Doug Porter, chief economist at BMO Capital Markets
Statistics Canada said the Canadian economy unexpectedly lost 9,400 jobs in June and unemployment rate rose to the highest level since December 2013, as an increase of hiring in the construction sector was offset by the biggest drop in part-time jobs in nearly two years. In contrast, economists had expected employment to rise 20,000, while unemployment rate was seen to remain unchanged from the previous month at 7.0%. On an annual basis, employment rose by 72,000, the lowest level in over four years. The part-time sector lost 43,000 jobs, slightly balanced out by 33,500 new full-time positions. By industry, one of the biggest drops in employment was within the business, building and other support services, with 27,000 positions cut in June. Another 15,000 jobs were lost within the agriculture sector. Nevertheless, as summer began, construction sector created 32,000 new jobs, the highest in over two years. Also, 21,000 jobs were added in other services sector, including civic and social organizations as well as household services. Canadian experts expected to see a positive gains in employment in June, driven by Ontario's election and the manufacturing sector.
On the back of the negative data, the Canadian Dollar declined to the two-week low, with the Lonnie losing 0.54% to C$1.0705.
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