Canada’s ever-volatile labour report posts ‘messy’ results for August

Fuelled by the loss of 92,000 part-time positions, August largely eliminated July’s healthy increase

Canada’s seesawing employment report posted particularly volatile numbers last month that showed big, mid-summer gains had essentially been wiped out by August.

The economy lost 51,600 net jobs last month in a decrease that helped drive the national unemployment rate to six per cent, up from 5.8 per cent in July, Statistics Canada reported Friday in its monthly labour force survey.

Last month’s drop, fuelled by the loss of 92,000 part-time positions, largely eliminated July’s healthy net increase of 54,100 positions.

However, August also featured a notable bright spot: full-time jobs rose by 40,400.

“A little bit of a mixed bag, but definitely not quite as bad as the headline would suggest,” TD senior economist Brian DePratto said of the August jobs report.

“Another messy one, to be frank… It’s always a noisy report, but it seems like the last few months have been particularly noisy.”

A closer look at the August data revealed even more turbulence in the month-to-month numbers.

Ontario lost 80,100 jobs last month after gaining 60,600 in July — with both data points almost entirely driven by swings in part time work.

The August decrease, a drop of 1.1 per cent, was by far the biggest decline among the provinces. It helped bump Ontario’s unemployment rate up to 5.7 per cent, from 5.4 per cent.

DePratto said it’s difficult to determine the cause of July’s ”odd, significant spike” in Canada’s most-populous province.

Some commentary, he noted, had connected the jump to a summertime hiring boost in the university sector that many expected would recede in the subsequent months.

But DePratto said the August drop didn’t reflect any significant reversals from earlier increases because the losses were concentrated in areas like construction and professional, scientific and technical services.

“Unfortunately, by and large, it looks like statistical noise,” he said.

Royce Mendes, director and senior economist for CIBC Capital Markets, summed up the jobs report in a research note to clients as “Now you see them, now you don’t.”

He described the Statistics Canada employment report as “always volatile and at times implausible”.

“While you can’t put too much faith in any one reading from the (labour force survey), there’s certainly nothing in the report to suggest that the economy is racing ahead,” Mendes wrote.

Mendes doesn’t expect the results to be enough to prevent the Bank of Canada from raising its benchmark interest rate in October, although if the economy remains in a “lower gear” he believes governor Stephen Poloz will need to follow a more-gradual, rate-hiking approach thereafter.

The central bank will also pay close attention to more signs Friday that wages are softening in Canada despite the tightened labour market.

The report showed that average hourly wage growth, which is closely watched by the Bank of Canada ahead of rate decisions, continued its gradual slide last month to 2.9 per cent after expanding 3.2 per cent in July and 3.6 per cent in June.

Compared with 12 months earlier, Canada’s overall employment was still up 0.9 per cent following the addition of 171,700 jobs, including 326,100 full-time positions.

In August, the data also show the economy lost 38,000 public-sector employee jobs last month, while the private sector shed 30,700 positions.

By industry, the goods-producing sector lost 30,400 jobs last month in a decline led by notable losses of 16,400 positions in construction and a drop of 9,200 in manufacturing.

The services sector shed 21,200 jobs in August after shedding 22,100 positions in professional, scientific and technical services.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Kelowna golf course ready and open for spring business

Two Eagles Golf Course opened Saturday, more to come

Kelowna-Lake Country MLA hopes annual climb will promote peace

MLA Norm Letnick’s 5th Annual Spring Climb for Health & World Peace is April 6

Possible assault to bus driver in Kelowna

A minor bus crash was reported just after 8 p.m. Friday night

Car crash nearly sends car over embankment in West Kelowna

RCMP search for driver of alleged stolen vehicle that caused crash

Update: Highway 3 reopened following rockslide near Keremeos

The slide occurred Friday March 22, at about 8 p.m. between Red Bridge and Standing Rock

Stolen Bentley spotted going wrong way down highway found in Summerland

The car has been recorded going the wrong way on the Coquihalla, found two days later

Okanagan woman launches sewing studio

“I know there’s a lot of people up and down the valley that would love to sew.”

1,300 cruise ship passengers rescued by helicopter amid storm off Norway’s coast

Rescue teams with helicopters and boats were sent to evacuate the cruise ship under extremely difficult circumstances

Letter: Stop raising the minimum wage

To the editor: The government is looking for ways to put more… Continue reading

Letter: Immigration will not help other countries, or our own

To the editor: Firearms are not the culprit in all those massive… Continue reading

Letter: Sprawl destroying natural landscape

To the editor: I agree with the assessment by Ian Pooley in… Continue reading

Former Okanagan teen found safe after disappearing from YVR airport

Ethan Burnett, 14, was found safe in Kelowna on March 22

B.C. university to offer first graduate program on mindfulness in Canada

University of the Fraser Valley says the mostly-online program focuses on self-care and well being

Province announces $18.6 million for B.C. Search and Rescue

The funding, spread over three years, to pay for operations, equipment, and training

Most Read