Newspaper article The Canadian Press

Economy Lost 6,400 Jobs in June; Gain in Full-Time Jobs Offset Part-Time Losses

Newspaper article The Canadian Press

Economy Lost 6,400 Jobs in June; Gain in Full-Time Jobs Offset Part-Time Losses

Article excerpt

Statistics Canada says 6,400 jobs lost in June

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OTTAWA - Canada suffered a net loss in jobs last month but overall performance on the employment front was better than expected in a result that did little to shed light on what the Bank of Canada will do on interest rates next week.

The central bank is expected to reduce its economic outlook for the year, but whether it will cut its key interest rate is a matter of debate among economists.

"On balance, this was a slightly better result than expected and makes the (central) bank's decision next week very much a toss-up," BMO chief economist Doug Porter said of the jobs report.

"Having forecast that we expect the bank to trim rates next week, we're not going to change the call on one murky labour force survey -- but it will make for one intense debate next week for the bank, especially if Greece does indeed manage to reach a deal this weekend."

Statistics Canada said there were 6,400 fewer jobs last month, as a strong gain in full-time employment only partially offset a bigger decline in part-time positions.

The economy shed 71,200 part-time jobs, which provide fewer than 30 hours per week, but added 65,800 full-time jobs. The national unemployment rate held steady at 6.8 per cent.

Economists had expected a loss of 10,000 jobs and an uptick in the unemployment rate to 6.9 per cent, according to Thomson Reuters.

Concerns have been raised in recent days about the strength of the Canadian economy, with some speculating the country slipped into recession in the first half of the year following a string of disappointing economic data.

The jobs report was the last major economic data point before the rate announcement and the release of the central bank's latest monetary policy report.

The C.D. Howe Institute's monetary policy council recommended Thursday that the Bank of Canada keep its target for the overnight rate on hold at 0. …

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