Workers are pictured at the Vancouver Shipyard in North Vancouver on October 7, 2013. THE CANADIAN PRESS/Jonathan Hayward

Workers are pictured at the Vancouver Shipyard in North Vancouver on October 7, 2013. THE CANADIAN PRESS/Jonathan Hayward

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

The latest jobs figures arrived less than a week before the Bank of Canada’s next interest-rate decision.

A healthy gain of 31,800 jobs last month wasn’t enough to keep the country’s unemployment rate from rising to six per cent as more people searched for work, Statistics Canada said Friday.

The agency’s latest labour force survey shows the jobless rate for June increased from 5.8 per cent in May to break the six per cent barrier for the first time since last October, when it was 6.2.

The unemployment rate moved up last month despite the addition of new jobs because nearly 76,000 more people entered the workforce.

The report also found that average hourly wage growth, which is closely watched by the Bank of Canada, remained strong last month at 3.6 per cent. The number, however, did come down from its nine-year high in May of 3.9 per cent.

The latest jobs figures arrived less than a week before the Bank of Canada’s next interest-rate decision.

Expectations have strengthened that governor Stephen Poloz will raise the benchmark for the first time since January. Experts predict the move even though the economy is facing significant uncertainty from Canada’s intensifying trade dispute with the United States as well as growing fears of a global trade war.

Related: Economy expands 1.7% in fourth quarter of 2017

Related: Economic outlook projects stable growth for B.C.

Compared with a year earlier, overall employment was up 1.2 per cent following the creation of 214,900 jobs, which was driven by 284,100 new full-time positions.

A closer look at the June numbers shows Canada added 9,100 full-time jobs in June and 22,700 part-time positions. The public sector gained 11,800 jobs and the private sector lost 2,000.

The goods-producing sector added 46,600 positions in June thanks to job-creation boosts in construction, natural resources and manufacturing.

Services sectors, meanwhile, lost 14,700 jobs mostly because of big decreases in accommodation and food services positions as well as wholesale and trade.

Ontario added 34,900 jobs for an increase of 0.5 per cent compared with the previous month, while Saskatchewan posted its largest monthly gain in over six years with the creation of 8,300 positions, which represented 1.5 per cent growth.

Youth unemployment increased to 11.7 per cent last month, up from 11.1 in May.

In a separate report Friday, Statistics Canada said the country’s merchandise trade deficit with the world widened in May to nearly $2.8 billion. The international trade deficit was about $1.9 billion in April and $3.9 billion in March.

The May numbers show that imports expanded 1.7 per cent, while exports dipped 0.1 per cent.

Higher imports in May of aircraft, other transportation equipment and energy products fuelled most of the increase. The figure for aircraft imports more than tripled to $937 million due to the purchase of several air liners from the U.S.

Exports declined mostly because of weaker trade on motor vehicles and parts as well as metal ores and non-metallic minerals.

The report showed that Canada’s trade surplus with the U.S. narrowed to $3.3 billion in May, from $3.7 billion April, as more imports headed north across the border and south-bound exports decreased.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Craft Culture Events hosts its first of four summer markets at Prospera Place in Kelowna (Craft Culture Events/Contributed).
Kelowna’s Prospera Place summer market a success

Craft Culture Events hosts its first of four summer markets and vendors were ‘excited’ to be back

Lightning in Kelowna, B.C. (Contributed)
Severe thunderstorm watch in effect for Okanagan

Conditions are favourable for the development of severe thunderstorms overnight

(Dave Ogilvie/Contributed)
UPDATE: West Kelowna fire crews rescue injured mountain biker

The injury took place at the top of Smith Creek Road

Kelowna flags were flown at half-mast after the discovery of a residential school burial site in Kamloops. (File photo)
Central Okanagan school board chair reflects on recent tragedies

Moyra Baxter offers condolenses to residential school victims, slain Muslim family

The RCMP presence in Central Okanagan public schools is being reviewed by the board of education. (File photo)
RCMP presence welcomed in Central Okanagan public schools

Staff survey feedback overwhelmingly positive from students, staff and parents

Canadian Prime Minister Justin Trudeau participates in a plenary session at the G7 Summit in Carbis Bay, England on Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Canada donating 13M surplus COVID-19 vaccine doses to poor countries

Trudeau says the government will pay for 87 million shots to be distributed to poor countries

Jane Linden
KCR: Volunteering keeps you active

Kelowna Community Resources shares stories of its volunteers in a weekly column

Premier John Horgan speaks as provincial health officer Dr. Bonnie Henry, right, and health minister Adrian Dix look on during a press conference to update on the province’s fall pandemic preparedness plan during a press conference from the press theatre at Legislature in Victoria, Wednesday, Sept. 9, 2020. THE CANADIAN PRESS/Chad Hipolito
B.C. officials to provide details on Step 2 of COVID reopening plan Monday

Step 2 could allow for larger gatherings and a resumption of recreational travel

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Longtime SOWINS volunteer Diane Fru (far left) walks with members of her family as they Walk To End Abuse Sunday, June 13, 2021. South Okanagan Women In Needs Society (SOWINS) raised a record amount this year. (Monique Tamminga Western News)
Walk to End Abuse in South Okanagan breaks fundraising record

More than $53,000 raised so far while the pandemic has increased need for SOWINS’ services

Indigenous Services Minister Marc Miller is seen during a news conference, Wednesday May 19, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Indigenous child-welfare battle heads to court despite calls for Ottawa to drop cases

Feds are poised to argue against two Canadian Human Rights Tribunal rulings

Two-year-old Ivy McLeod laughs while playing with Lucky the puppy outside their Chilliwack home on Thursday, June 10, 2021. (Jenna Hauck/ Chilliwack Progress)
VIDEO: B.C. family finds ‘perfect’ puppy with limb difference for 2-year-old Ivy

Ivy has special bond with Lucky the puppy who was also born with limb difference

A million-dollar ticket was sold to an individual in Vernon from the Lotto Max draw Friday, June 11, 2021. (Photo courtesy of BCLC)
Lottery ticket worth $1 million sold in Vernon

One lucky individual holds one of 20 tickets worth $1 million from Friday’s Lotto Max draw

Most Read