Canada Suffers Biggest Decline of Full-Time Jobs in 23 Months

June 6, 2008

Canada’s May labor market report was mixed but disappointing on the whole. Overall employment went up just 8,400 compared to a 10K expectation and following better-than-forecast advances of 19.2K in April, 14.6K in March, 43.3K in February, and 46.4K in January. A 34.2K drop in full-time workers was the greatest monthly loss since June 2006. Service sector jobs fell by 20.2K, and there were 1.6K fewer adult male workers. Wage inflation accelerated to 4.8% y/y, three times faster than the gain of consumer prices, from 4.2% in April. Manufacturing jobs went up 34.2K on the month but were still 66.4K less than in May 2007. Growth in jobs for adult women grew briskly, and the summer youth job market got off to a decent start. The jobless rate did not climb higher, instead remaining at 6.1%. From a year earlier, employment rose by 2.0%, almost as fast as the 2.1% increase in the labor force.



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