Employment in Canada rose by 27,000 in August, however, the unemployment rate also rose to 8.7% from 8.6%.
Here's why we shouldn't get excited over this report. The employment gain was mainly in part time jobs which rose by 30,600.
By sectors the numbers break down this way:
- Manufacturing lost another 17,300 jobs, with 12 months losses at 231,000 or 12%.
- Government jobs fell by 11,500.
- Self-employed fell by 10,600
Now for the good news:
- Employment at private companies rose by 49,200
- Construction employment rose by 12,100
- Scientific services rose by 10,400.
Overall, the report shows that Canada is coming off a weaker base than the U.S. with 8.7% unemployment and that the employment gain was mainly due to an increase in part time jobs. Plus the overall unemployment rose 0.1 percentage points to 8.7%.
Nevertheless, it may set a trend for the U.S. economy in the months to come.
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