A worker walks on a construction site in Hamilton, Ont., on November 14, 2013. THE CANADIAN PRESS/Aaron Lynett

Surge in part-time work offsets full-time losses, helps drops unemployment rate

A rush of new part-time jobs offset a drop in full-time work last month to help Canada post a net gain of 54,100 positions and drop the national unemployment rate down to a four-decade low.

A rush of new part-time jobs offset a drop in full-time work last month to help the economy post a net gain of 54,100 positions and drop the unemployment rate to a four-decade low.

The July jobless rate was 5.8 per cent, down from six per cent the previous month, Statistics Canada said Friday in its latest labour force survey.

However, the details of the report revealed weaker data underneath the bigger-picture improvements.

The country gained 82,000 less desirable, part-time positions last month — and it lost 28,000 full-time jobs.

A closer look at the numbers also showed the public sector made the biggest contribution to the July increase with 49,600 new jobs, while the private sector added 5,200 positions.

The agency said average hourly wage growth, which is closely monitored by the Bank of Canada, continued its gradual slide last month to 3.2 per cent after expanding 3.6 per cent in June and 3.9 per cent in May.

The total number of hours worked in July expanded 1.3 per cent, a slightly slower pace than the June reading of 1.4 per cent.

“In the wacky world of Canada’s monthly employment numbers, July came up with another head scratcher, with some big headlines but some disappointments in the fine print,” CIBC chief economist Avery Shenfeld wrote Friday in a research note to clients.

Related: Economy adds 31,800 jobs in June, unemployment rate rises to 6.0%

Related: Best B.C. cities to live in: millennial edition

Shenfeld added that there are “lots of reasons to question just how good the data really are here.”

Still, overall, he said the report contained a “good” set of numbers that will keep markets guessing whether the Bank of Canada will introduce its next interest rate hike in September or October. CIBC predicts the next rate increase will land in October.

Compared with a year earlier, overall employment was up 1.3 per cent following the addition of 245,900 jobs for an increase driven by 210,500 new full-time positions.

By industry, the services sector saw the biggest gains last month with a combined net increase of 90,500 jobs, which was led by 36,500 new positions in education and 30,700 in health care and social assistance.

Overall, the goods-producing sector lost 36,500 jobs in July, with a notable loss of 18,400 positions in manufacturing and a drop of 12,300 in construction.

Across the provinces, Ontario gained 60,600 jobs — all in part-time work — and the unemployment rate dropped 0.5 percentage points to 5.4 per cent for its lowest reading since July 2000.

Employment also rose in British Columbia and Newfoundland and Labrador, while Saskatchewan and Manitoba lost jobs last month.

More women between the ages of 25 and 54 years old were working in July as the category saw a gain of 30,300 jobs.

The youth unemployment rate — representing workers aged 15 to 24 years old — fell to 11.1 per cent, down from 11.7 per cent in June. The report said the main cause of the drop was due to the fact fewer young people were looking for work.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Seven Days in Chilliwack for the week of Dec. 17

A list of community events happening in Chilliwack from Dec. 17 to 23

Excel Martial Arts raises more than $5,000 for family of Chilliwack man killed in workplace accident

By-donation fundraiser event helps wife, three children of 28-year-old Nathan Appleton of Chilliwack

Chilliwack Lions Club has a new place to call home

After more than five years without a headquarters, Chilliwack Lions Club moves into new hall

Sardis Falcons top Heritage Woods in field lacrosse opener

The Falcons rallied from a halftime hole to take a big win on the road in Port Moody.

Chilliwack prolific offender charged in four alleged incidents in 12 days

Branden Tanner busted for alleged smash-and-grab Nov. 30, then incidents Dec. 3, Dec. 8 and Dec. 11

Trudeau to make it harder for future PM to reverse Senate reforms

Of the 105 current senators, 54 are now independents who have banded together in Independent Senators’ Group

Boeser has 2 points as Canucks ground Flyers 5-1

WATCH: Vancouver has little trouble with slumping Philly side

Man dies after falling from B.C. bridge

Intoxicated man climbed railing, lost his balance and fell into the water below

Hundreds attend Hells Angels funeral in Maple Ridge

Body of Chad John Wilson found last month face-down under the Golden Ears Bridge.

B.C. animation team the ‘heart’ of new ‘Spider-Man: Into the Spider-Verse’

The animators, largely based in Vancouver, ultimately came up with a creative technique that is drawing praise

Light at the end of the tunnel for UN climate talks

Meeting in Katowice was meant to finalize how countries report their emissions of greenhouses gases

Gas prices to climb 11 cents overnight in Lower Mainland

Hike of 17 cents in less than 48 hours due to unexpected shutdown of Washington state pipeline

Janet Jackson, Def Leppard, Nicks join Rock Hall of Fame

Radiohead, the Cure, Roxy Music and the Zombies will also be ushered in at the 34th induction ceremony

Supreme Court affirms privacy rights for Canadians who share a computer

Section 8 of the Charter of Rights and Freedoms protects Canadians against unreasonable search and seizure

Most Read