Canada Adds 6,660 Jobs in July

By Paul Vieira 

        OTTAWA--Canada's economy created slightly more jobs than expected in July, but weakness in some key employment categories painted a mixed picture of the country's labor market.
        Canada added a net 6,600 jobs in July, and the unemployment rate held steady at 6.8%, Statistics Canada said Friday. Expectations were for a gain of 5,000 jobs and a 6.8% jobless rate, according to economists at Royal Bank of Canada. The number of full-time positions fell 17,300 while the number of people employed part-time rose by 23,900. The private sector shed 28,100 jobs in the month.
        Meanwhile, the ranks of the self-employed climbed 40,500, for the biggest one-month increase since January. In contrast, the number of people employed at organizations or firms that pay regular weekly or biweekly wages fell 33,900.
        Economists said the Canadian jobs report was neither weak nor strong but didn't point to a labor market in recession territory. "While many have been quick to label this year's economic performance a recession, the job numbers just haven't backed that up," said Douglas Porter, chief economist at BMO Capital Markets.
        Canada's economy has been sideswiped this year by lower prices for many commodities, including oil, its biggest export, and posted negative growth in the first five months of the year.
        The U.S. jobs report, also released Friday, indicated Canada's biggest trading partner added 215,000 jobs in July, in line with forecasts.
        After a string of disappointing readings on the Canadian economy in the second quarter, Canada's latest trade report released earlier this week offered some positive signs. The country's trade deficit narrowed significantly more than anticipated on a jump in exports, offering policy makers some encouragement that Canadian firms outside the energy sector are starting to benefit from healthy U.S. demand and a lower Canadian dollar.
        The Bank of Canada cut its main interest rate last month for the second time in 2015, citing a deeper-than-expected impact of the decline in oil prices and a sluggish recovery in non-energy exports. In its outlook, the central bank said it anticipated further job losses in the energy sector and related industries. It said interprovincial commuting and migration from elsewhere in Canada to the western, resource-rich provinces had declined, meaning the labor supply has increased in other regions--adding to the amount of slack in the country's labor market.
        Despite the trouble in the commodity sector, hiring has risen in Canada. On a 12-month basis, Canada has added 161,400 jobs, Statistics Canada said Friday, with all the gains concentrated in full-time work.
        On a sector basis, employment in the goods-producing sector dropped 12,200 in July, led by declines in construction and manufacturing.
        The services sector, which accounts for roughly two-thirds of Canadian gross domestic product, added 18,800 workers, largely due a climb in employment in professional and technical services.
        Write to Paul Vieira at paul.vieira@wsj.com
        (END) Dow Jones Newswires

        August 07, 2015 10:11 ET (14:11 GMT)

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