Canada's unemployment rate drops as surge in part-time work offsets full-time losses

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Canada added 54,000 net jobs in July, pushing the unemployment rate down 0.2 percentage points to 5.8 percent, the government said Friday.

"Still, the labour market remains at or near full employment, and will do its part to justify a Bank of Canada rate hike in the months ahead", he added.

Data collected for the Labour Force Participation Survey showed Windsor's participation rate rose a tenth of a percentage point in July to 60.5 per cent. In Alberta, unemployment held steady with a rate of 6.7 per cent up from June's 6.5 per cent. The economy added more than 54,000 jobs last month and the unemployment rate is now at 5.8 per cent.

According to Statistics Canada, a total of 124,200 people reported they were employed in a part-time position, a drop from the 128,300 that reported being part-time workers in July.

In Vancouver the unemployment rate rose from 4.6 per cent in June to 4.8 per cent in July.

Bank of Montreal chief economist Douglas Porter also wrote about the jobs numbers in a research note: "Today's job report is a classic case of 'nice headlines, shame about the details.' While we would still give the overall result a passing grade, it's tough to get overly enthusiastic". Employment in the goods-producing sector fell by 36,500 jobs, mostly in manufacturing, while the services sector gained a net 90,500 positions, the majority in education and health care.

"Ontario's share of paid employment in Canada [is] at roughly 39% in 2018, an increase compared to past year".

Average hourly wage growth, which is scrutinized by the Bank of Canada, continued its gradual cool-off last month with a year-over-year reading of 3.2 per cent. "A solid headline number masked less than optimal details: all part-time hiring, and by and large public sector, driven by universities".