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Unemployment rate drops to four-decade low in July

13 August 2018

It isn't expected to be earth shattering news as estimates suggest about 15,000 jobs were created last month.

Data collected for the Labour Force Participation Survey showed Windsor's participation rate rose a tenth of a percentage point in July to 60.5 per cent. It was 5.8 per cent in July 2017.

The jobless rate had been 5.8 percent from February through May, the lowest since the current method of calculating unemployment was introduced in 1976, before edging up to 6.0 percent in June.

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The increase in employment was driven by the public sector, and all of the new jobs were part-time, while 28,000 full-time jobs were shed in the month, said Statistics Canada.

In total there were 34,700 who were unemployed in July, up from 34,400 in June. But, it could be an indicator of whether the Bank of Canada will increase interest rates next month.

"In the wacky world of Canada's monthly employment numbers, July came up with another head scratcher, with some big headlines but some disappointments in the fine print", CIBC chief economist Avery Shenfeld wrote Friday in a research note to clients. These gains were largely attributed to an overall growth in the number of part time jobs available.

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By industry, the services sector saw the biggest gains last month with a combined net increase of 90,500 jobs, which was led by 36,500 new positions in education and 30,700 in health care and social assistance.

In an interview, Shenfeld added that "for the past year, Canadians have certainly been enjoying a very solid labour market with a low unemployment rate and that's still true in the latest data".

Professional scientific and technical services, the goods producing sector and the construction industry all reported drops in overall employment between June and July.

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Average hourly wages in July, a figure watched closely by the central bank, rose by 3.0 percent from a year earlier.

Unemployment rate drops to four-decade low in July