Country sheds 7.5K jobs, local employment relatively unchanged

May had a weaker than expected labour market, according to the latest numbers released Friday from Statistics Canada.

Canada shed 7,500 jobs last month on the back of full-time employment, as this was only partially offset by an uptick in part-time employment. The economy lost 31,000 full-time positions and gained 23,500 part-time. The small dip held the unemployment rate steady at its record low for the fourth consecutive month at 5.8 per cent.

The unemployment rate, in part, remained steady due to a slide in labour force participation from 65.4 to 65.3 per cent. This represents the number of those working and actively looking for work.

Gains in employment rose by 18,000 in accommodation and food services, driven by growth in British Columbia. The professional, scientific and technical service fields also posted a strong growth of 17,000 in May, entirely due to gains in Ontario.

May’s report continues the trend of a less than desirable employment picture for the second month after the nation posted a slight net loss of 1,100 jobs in April. 

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The monthly data dump from the national agency said employment for core-aged men and women between 25 to 54 decreased by 19,000 in May but increased for those aged 55 and older. The unemployment rate for men in this age group held steady at 5 per cent, while it increased by 0.2 percentage points to 4.9 for women. 

There was little change in the number of employees in both the private and public sectors as well as the number of self-employed workers. The slowdown is not expected to be a major destabilizing jolt to the market, as Canada has still added a net 238,000 jobs over the past 12 months. 

With average hourly wage growth, a key indicator watched by the Bank of Canada, accelerating by 3.9 per cent year-over-year — the fastest uptick in nine years — the small setback in employment should not be enough to subdue the central bank from boosting its key interest rate next month, according to some economists.

“The May employment report was a bit of a stinker, but stepping back shows a labour market that is pretty tight, with some upwards wage pressure,” Robert Kavcic, senior economist with the Bank of Montreal wrote Friday. “And in some other strong indicators this week, the Bank of Canada should be on track to raise rates next month barring more fallout on the trade front.”

Provincially, employment was little changed in most provinces. In Saskatchewan, full-time employment fell by 1,500 positions and 800 part-time jobs. This pushed the provinces’ unemployment rate up by 0.5 points to 6.8 per cent.

Prince Albert, year-over-year, remains on a somewhat positive trend, posting an unemployment rate of 7.6 per cent in May, down from 10.7 this time last year. The size of the city’s labour force is also down to 22,300 from 22,500 in May 2017. The participation rate, however, remains on its downward pace, coming in at just 65.2 per cent in May 2018, from 66.2 12 months earlier.

tyler.marr@jpbg.ca

On Twitter: @JournoMarr