Canada shads 2,200 new jobs in June; unemployment rate increases to 5.5 percent

Statistics Canada reported on Friday that the number of employed people fell by 2,200 m-o-m in June, while economists had forecast a gain of 10,000 and after an unrevised surge of 27,700 in the previous month.

Meanwhile, Canada's unemployment rose to 5.5 percent from 5.4 percent in May, matching economists’ forecast of 5.5 percent.

According to the report, full-time employment increased by 24,100 (or +0.2 percent m-o-m) in June, while part-time jobs declined by 26,200 (or -0.7 percent m-o-m).

In June, the number of private sector employees rose by 23,000 (+0.2 percent m-o-m), while the number of public sector employees grew by 16,200 (+0.4 percent m-o-m). At the same time, the number of self-employed plunged by 41,400 (-1.4 percent m-o-m) last month.

Sector-wise, there were more people employed in health care and social assistance (+22,000 jobs in June), educational services (+13,000), transportation and warehousing (+13,000) and information, culture and recreation (+13,000). In contrast, there were fewer people working in wholesale and retail trade (-16,000), "other services" (-15,000), manufacturing (-15,000), and natural resources (-7,800).

On a year-over-year basis, employment grew by 421,000 (+2.3 percent).

In the second quarter, employment rose by 132,000 (+0.7 percent), virtually all in full-time work.