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Canada's Unemployment Rate Falls To 7% As Economy Again Fails To Create Jobs

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Canada’s labour market continues to disappoint.

The country created almost no net new jobs in July, StatsCan reported Friday, as increases in part-time jobs offset losses of full-time positions.

Overall, there were 200 more jobs in July than there were a month earlier, well below analysts’ calls for some 20,000 new jobs. Full-time jobs shrank by 60,000.

The unemployment rate fell to 7 per cent from 7.1 per cent as some workers left the job market. The participation rate -- the percentage of people with a job among the working-age population -- fell to 65.9 per cent, the lowest number since 2001.

Ontario lost 29,000 full-time jobs, but overall job numbers were up by about 15,000, thanks to a large jump in part-time jobs.

Alberta actually lost jobs in July: Total employment was down by 5,000, with about 9,000 full-time jobs lost and 4,000 part-time jobs gained.

British Columbia lost jobs as well, about 5,000 in total. But the province bucked the trend, creating 9,000 full-time jobs, though that was offset by a larger loss of part-time jobs.

Over the past year, Canada has added 115,000 jobs or 0.7 per cent, not enough to cover population growth.

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