The Canadian economy experienced a significant setback in July, losing 41,000 jobs, with young workers and the private sector facing the heaviest losses, according to Statistics Canada. Despite these losses, the unemployment rate remained unchanged at 6.9%, as the number of job seekers stayed roughly the same from June.
Key Highlights from the Report
- Full-time positions saw a decline of 51,000, with the private sector accounting for the majority of these losses.
- Young workers aged 15 to 24 were particularly hard-hit, losing 34,000 positions. This drop brought the employment rate for this age group down to 53.6%, the lowest since November 1998, excluding the COVID-19 pandemic period.
- The job losses in July partially reversed the unexpected gain of 83,000 positions in June.
Sector-Specific Impacts
- Information, culture, and recreation led the job losses with 29,000 positions gone.
- Construction followed closely, shedding 22,000 roles.
- On a brighter note, transportation and warehousing added 26,000 jobs, marking its first increase since January. This sector has been influenced by U.S. demand for exports and recent tariff disruptions.
- Manufacturing showed modest growth for the second consecutive month, adding 5,300 jobs in July, though it's still down by 9,400 jobs year-over-year.
Long-Term Unemployment Concerns
- 23.8% of the 1.6 million jobless Canadians in July were in long-term unemployment, defined as being out of work for 27 weeks or more. This is the highest rate since February 1998, outside the pandemic.
Wage Growth
- Average hourly wages increased by 3.3% annually in July, a slight rise from June.
This report underscores the challenges facing Canada's job market, particularly for young workers and those in sectors vulnerable to international trade tensions.
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