Published: Mon, August 13, 2018
Business | By Eloise Houston

Montreal unemployment rate inches up in July

Montreal unemployment rate inches up in July

This matches Shenfeld's call in late July, when data showed the economy grew 0.5% in May.

Month-over-month, both the number of people working and the number of unemployed increased due to gains in the local labour pool.

Data released on August 10 from Statistics Canada also reveals B.C.'s unemployment rate dipped from 5.2 per cent to 5 per cent between June and July.

Ontario saw an increase of 61,000 jobs, all of them part-time, dropping the provincial unemployment rate by half a percentage to 5.4 per cent.

Bank of Montreal chief economist Douglas Porter also wrote about the jobs numbers in a research note: "Today's job report is a classic case of 'nice headlines, shame about the details.' While we would still give the overall result a passing grade, it's tough to get overly enthusiastic".

In total there were 34,700 who were unemployed in July, up from 34,400 in June.

The report says the country added 82,000 less desirable, part-time positions last month - and lost 28,000 full-time jobs.

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

Calgary's rate increased slightly from 7.7 per cent to 7.9 per cent. Employment in the goods-producing sector fell by 36,500 jobs, mostly in manufacturing.

Market expectations of an interest rate hike in September, as reflected in the overnight index swaps market, rose to 27.08 percent from 23.32 percent before the release. However, employment did rise by 54,000 jobs mainly in part-time work.

July's unemployment rate marked a minimal increase to what has been the lowest unemployment rate in at least 31 years and suggests that the region's economy is continuing to hold strong and finally recovering from the effects of the 2008-2009 recession.

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