Canadian Manufacturing

Service jobs up, factory jobs decline as unemployment rate ticked down in June

The survey found that Canada had added 170,600 services jobs compared to 12 months earlier, but the country's goods-producing industries shed 46,200 jobs


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OTTAWA—Canada’s overall labour market was stuck in neutral last month as jobs gains in the services sector were offset by declines in factory work, Statistics Canada said July 8.

The federal agency’s latest labour force survey said the national unemployment rate fell to 6.8 per cent in June, down from 6.9 per cent the previous month.

Overall, the data indicated the country lost 700 jobs last month—a change so slight it was statistically insignificant.

Service sector jobs continued to rise last month, gaining 45,500 positions, with the biggest increases registered in accommodation and food services as well as information, culture and recreation.

Compared to 12 months earlier, the survey found that Canada had added 170,600 services jobs, an increase of 1.2 per cent.

However, in contrast, the country’s goods-producing industries shed 46,200 jobs, as construction and manufacturing industries saw the largest declines. Over the previous year, 63,000 factory jobs were lost overall—a drop of 1.6 per cent.

Employment in the category of self-employed work grew by 37,700 last month, while the number of employee positions dropped 38,400 positions, the survey found.

The data also showed that the labour market shed 40,100 full-time jobs and gained 39,400 less-desirable part-time positions. However, the agency considered both these numbers to be statistically insignificant.

British Columbia was the only province to add a significant number of jobs last month with 16,000 new positions, while the labour markets in other regions experienced decreases or remained largely unchanged.

A consensus of economists had predicted the country to add 5,000 jobs and for the unemployment rate to move up to seven per cent, according to Thomson Reuters.


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