Canadian job market bounces back in August after big drop

The Canadian job market rebounded last month, gaining back much of the ground lost in July.The economy created 26,200 net new jobs in August compared with a loss of 31,200 in the previous month, Statistics Canada said Friday.However, even with the increase in the number of jobs, the unemployment rate crept up to 7.0 per cent compared with 6.9 per cent in July as more people entered the labour force and started looking for work.Economists had expected a gain a 15,000 jobs and the unemployment rate to hold steady at 6.9 per cent, according to Thomson Reuters.Canada’s jobs numbers have been volatile in recent months.August’s employment data included a gain of 52,200 full-time jobs, nearly offsetting a loss of 71,400 full-time positions in July. The number of part-time jobs in August fell by 26,000 compared with a gain of 40,200 the previous month.TD Bank economist Brian DePratto said it was encouraging to see a modest rebound in hiring after the weak report for July, especially given the details in the latest reading.“Job growth came from full-time employment, and the unemployment rate rose for the ‘right’ reason as more Canadians were engaged with job markets in August, reversing a four month trend,” he wrote in a note to clients.“Still, this is a very volatile series, and we shouldn’t put too much weight on any given month. From a longer-term perspective, Canadian labour markets remain consistent with the economic lethargy that has characterized the first half of this year.”The number of jobs rose in Quebec by 22,000 in August as its unemployment rate edged up to 7.1 per cent from 7.0 per cent, while Newfoundland and Labrador gained 4,000 jobs in the month as its unemployment rate moved down to 12.3 per cent from 12.8 per cent. New Brunswick lost 3,000 jobs, with its unemployment rate dropping to 9.4 per cent from 9.7 per cent.Related stories:Bank of Canada raises concerns about economy, holds interest rate at 0.5%Canadian economy shrinks in second quarter, worst since 2009 financial crisisFull-time work takes big hit as Canada loses 31,200 jobs in JulyStatistics Canada said there was little change in the other provinces, but noted that Ontario saw an increase in its unemployment rate to 6.7 per cent from 6.4 per cent in July as more people sought work.The number of public sector employees jumped 57,000 in August, while the number of private sector jobs increased 8,300. The number of self-employed workers slipped by 39,100.The jobs report follows the Bank of Canada’s decision earlier this week to keep its key interest rate target on hold at 0.5 per cent where it has been for more than a year.In making its decision, the central bank raised concern about the strength of the Canadian economic recovery, noting that a drop in exports earlier this year was larger and more broad-based than expected.However, the Bank of Canada says it still expects a “substantial rebound” in the economy in the second half of the year. Woman looking through a filing cabinet. GETTY IMAGES/Raphye Alexius by Craig Wong, The Canadian Press Posted Sep 9, 2016 4:00 am MDT Last Updated Sep 9, 2016 at 9:00 am MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email Canadian job market bounces back in August after big drop read more