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Last week ended with another disappointing Canadian employment report.
Statistics Canada estimated that we gained only 200 new jobs in July. The details in the report showed that we lost 60,000 full-time jobs and generated almost the same number of new part-time jobs to take their place. Not surprisingly, average wage growth continued to sputter along, struggling to keep pace with inflation.
If you’re looking for a silver lining in what was a mostly dark-cloud report, consider that we added 11,500 new manufacturing jobs last month, at least temporarily reversing the steady erosion of jobs in that sector (which has shrunk by approximately 15,000 over the past year). Also, average hours worked increased for the month, which might be an early signal of rising demand for labour if there is any follow through in the coming months.
The Canadian dollar fell on the news, and while that will help make our exports more competitive over the long run, the immediate impact will be higher import prices.