Canada created 41,700 jobs in July, considerably more than expected and the unemployment rate dropped to 7.0% from 7.1% in June.
According to revised data from Statistics Canada, market analysts had forecast a gain of 20,000 jobs.
Statscan initially reported a week ago that just 200 new positions were created in July, but withdrew the data, citing processing errors.
Even though the numbers were better than predicted, they still reflect a sluggish Canadian economy that has yet to benefit fully from a recovery in the United States, its main trading partner.
The YoY employment gain was only 156,800 jobs, or 0.9% while the six month moving average for employment growth grew to 10,900 in July from 8,800 in June. The labor force participation rate remained at 66.1%, the lowest since the 66.0% seen in November 2001.
Mr Paul Ferley assistant chief economist at Royal Bank of Canada said that the July data suggested a totally different picture in terms of the employment conditions in July compared to the initial release. Year to date, the gains in employment are still fairly modest. Going forward, hopefully we’ll see sustained increases, but at the moment certainly these revised July numbers, it’s showing a more encouraging picture, though we’re not out of the woods yet.”
Source – Reuters