Part-time work helps push Canada’s unemployment rate down; province, city don’t fare as well
Despite a surge in part-time employment across the nation offsetting full-time declines and pushing down Canada’s unemployment rate, the numbers paint a less-than-rosy picture in Saskatchewan and Prince Albert.
According to Statistics Canada’s monthly labour force survey, employment rose by 54,000 across the nation last month, driving the jobless rate down 0.2 points and back to its four-decade low of 5.8 per cent. Though the numbers appear pleasant on the surface, some economists warn they should be taken with a grain of salt when diving deeper into the details.
First is the fact the gains came on the back of 82,000 less desirable part-time positions while the country shed 28,000 full-time jobs. Secondly, they point out how the public sector accounted for a large chunk of the increase at 49,600, while the private sector only tallied up 5,200. The national statistics agency also reported cooling average hourly wage growth, an aspect closely monitored by the Bank of Canada, sliding to 3.2 per cent year-over-year in July from 3.6 per cent last month and 3.9 per cent in May.
“Today’s job report is a classic case of ‘nice headlines, shame about the details,’” Bank of Montreal Chief Economist Douglas Porter wrote in a note Friday. “While we would still give the overall result a passing grade, it’s tough to get over enthusiastic.”