Canadian employment decreased by 0.2% from the previous month, losing 41,000 jobs to 21.020 million in July. The employment rate fell by 0.2 points to 60.7%, while the unemployment rate remained unchanged at 6.9%.
Average hourly wages rose 3.3% year-over-year to $36.16 last month, while total hours worked were up 0.3% compared to July of the previous year.
Employment in B.C. fell by 0.5% to 2.953 million, losing 16,300 jobs in July. Employment in Metro Vancouver fell by 2.2% to 1.697 million. The unemployment rate in B.C. increased by 0.3 points to 5.9%, while Vancouver's rate rose by 0.3 points to 6.1%.
July's jobs report shows weak labor force growth, with job losses in full-time work (-51,000) and the private sector (-39,000). Youth unemployment reached 14.6%, the highest since September 2010 (excluding pandemic years). Since January, employment growth has been minimal at 0.1%, and the unemployment rate is near its highest level since the pandemic.
This report supports the possibility of a Bank of Canada rate cut in September to stimulate the economy and labor market while keeping inflation steady.
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Source: BCREA