Canada posted weaker-than-expected job gains for July, but it was not enough to sway expectations for a September rate hike by the Bank of Canada. The economy created 5,900 new jobs, the smallest gain since March, and down from 14,200 new jobs in June, Statistics Canada said on Friday. The unemployment rate edged up 0.1 percentage points to 6.8 percent, after touching a 5-year low in June.
The labour gains were well below expectations. Analysts were expecting 20,000 jobs to be created in July and the unemployment rate to remain unchanged at 6.7 percent.
Nesbitt Burns chief economist Sherry Cooper called the July unemployment report "very disappointing," especially in view of the fact that all the jobs created were part-time ones.
Statscan said 2,500 full-time jobs were lost in July, while 8,500 part-time jobs were created.
The manufacturing sector, hit by a strong Canadian dollar and high prices for raw materials, lost 26,000 jobs, mostly in the economic powerhouses of Ontario and Quebec.
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