The Canadian labour market took an unexpected turn for the worse last month. According to Statistics Canada, 39,000 people lost their jobs in July and the national unemployment rate now sits at 7.2%.
In Waterloo Region, the unemployment rate rose to 8% from 7.5% and in Brantford the unemployment rate increased by 0.1% to 6.7%. Guelph had a little bit of encouraging news. Their unemployment rate fell 0.2% to 7.7%.
This is the second consecutive month that the economy lost jobs, and the trend could continue into August.
In the last week alone, two manufacturers shut their doors in Waterloo Region: Gerdau Cambridge Mill and Barbarian Rugby Wear.
Ontario Premier Kathleen Wynne discussed the economy and manufacturing while touring a plant in Cobourg on Friday. “We’re still recovering from a hit, particularly in the manufacturing sector… and we can’t kid ourselves that we’re in transition.”
Traditional manufacturing employees, men between the ages of 25 and 54, were hit the hardest according to Statistics Canada.
So were young people between the ages of 15 and 24. Young workers lost 45,600 jobs in July, reflecting one of the most difficult summers for students in recent history. Statistics Canada noted that the employment rate for students aged 15 and 16 was the lowest since 1977.
Some say government cutbacks and fiscal restraint are to blame for the job losses, but Doug Porter, a BMO Capital Markets Chief Economist questions that claim: “We’re likely to see some pressure in public sector employment over the next couple of years, but it’s highly unlikely it all happened in a month.”
The steepest losses were in health care and social assistance. Jobs in the public sector posted a record loss.
The private sector was the biggest winner, adding more than 31,000 jobs last month.
Economists warn these one-month job reports often represent blips, not a long-term trend. They say Canadians should look at the bigger picture.
-- With files from CTV National News and The Canadian Press
