Canada a nation of parttimers as job hunters give up amid scant

OTTAWA — Trouble in Canada’s anemic labour market continued into July as a paltry 200 jobs were added during the month, falling spectacularly short of estimates.[np_storybar title=”‘Disappointing’ July jobs: What the analysts say” link=”https://business.financialpost.com/2014/08/08/canada-adds-only-200-jobs-in-july-what-the-analysts-say/”%5D“There was a shocking drop in full-time jobs, down almost 60,000. We did see a drop in the unemployment rate, however, that drop only came on the back of the participation rate, so it’s not encouraging at all.“Overall, it goes in line with what we’ve seen seasonally in the July report, which is that it tends to miss expectations over and over again.“All in all, it highlights a very disappointing pace of job gains in Canada.”– Camilla Sutton, chief currency strategist at ScotiabankRead more [/np_storybar]Economists had expected the economy to bounce back from the unexpected 9,400 decline in June by adding around 20,000 new jobs.Canada’s unemployment rate dropped one-tenth of a point to 7.0% for the month, but that’s only because 35,400 people stopped looking for work.The participation rate, which tracks how many people are actively searching for jobs, declined to 65.9% from 66.1% in June. That’s the lowest it’s been since late 2001, BMO senior economist Benjamin Reitzes noted in a report.The Bank of Canada, which pays close attention to the labour participation rate, says it will not consider a hike in rates until the economy shows lasting signs of a recovery and employment picks up.“Soft job growth and modest wage gains will keep the Bank of Canada singing a dovish tune,” Mr. Reitzes said in his report.The Canadian dollar hit a session low of U.S. 91.20 cents shortly after Statistics Canada released the employment data.Hourly WagesScotiabank economists Derek Holt and Dov Zigler said in a report to clients they were taken aback by some rare offsetting numbers in the employment report.“What caught our attention was a series of remarkable coincidences that while not statistically impossible to explain collectively nevertheless arise with the regularity of asteroids hitting our planet.”For instance, between June and July, the number of full-time jobs fell by 59,700 while part-time jobs increased by 60,000.Finance Minister Joe Oliver told reporters in Toronto on Friday that StatsCan is producing data objectively, and he’s working with the numbers as they’re presented to him.What caught our attention was a series of remarkable coincidences that while not statistically impossible to explain collectively nevertheless arise with the regularity of asteroids hitting our planet“Sometimes coincidences happen.  I’m sure that represents the best data that we have.  Data is often revised after when you have all the numbers in, but this is the best information that we’ve got,” he said.“Canada is rapidly becoming a nation of part-timers,” said Paul Ashworth, chief North American economist at Capital Economics in Toronto.“Over the past 12 months, full-time employment has actually declined by a cumulative 3,100, while part-time employment has increased by 118,500.”Most of the month’s job losses came in construction, health care and social assistance. However, employment in educational services and in information, culture and recreation rose in July.The majority of new jobs were concentrated among people between the ages of 15 and 24, Statistics Canada said, while there were losses among people aged 55 and older.Regionally, Newfoundland and Labrador and Manitoba were the only provinces to show job growth, while employment fell in New Brunswick. The rest of the provinces remained mostly unchanged.The Canadian Press with files from the Financial Post and Bloomberg News read more