Economy

Canada adds 54,100 jobs, unemployment rate back down to record low

Canada adds 54,100 jobs, unemployment rate back down to record low

The Canadian dollar is down to $0.7651 cents US and oil is up $0.45 to $67.26 a barrel.

The youth unemployment rate - representing workers aged 15 to 24 years old - fell to 11.1 per cent, down from 11.7 per cent in June.

The economy added 54,100 jobs, another strong month following a 31,800 gain in June.

According to Statistics Canada's monthly labour force survey, employment rose by 54,000 across the nation last month, driving the jobless rate down 0.2 points and back to its four-decade low of 5.8 per cent.

Month-over-month, Saskatchewan's employment fell by 4,200, bringing the unemployment rate up 0.3 percentage points to 6.6 per cent.

At the same time, employment in Alberta held steady as a decrease in full-time work was largely offset by an increase in the number of people working part time.

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First is the fact the gains came on the back of 82,000 less desirable part-time positions while the country shed 28,000 full-time jobs.

But overall he said the report contained a "good" set of numbers that will keep markets guessing whether the Bank of Canada will introduce its next interest rate hike in September or October.

The Bank of Canada has raised rates four times over the past year as the economy strengthened and says further tightening will be data dependent.

Professional scientific and technical services, the goods producing sector and the construction industry all reported drops in overall employment between June and July.

"The labour market remains robust and there is easily enough here to convince the Bank of Canada to maintain its gradual tightening campaign - there's just not enough to get it to accelerate the schedule", BMO chief economist Doug Porter said in a note to investors. "A solid headline number masked less than optimal details: all part-time hiring, and by and large public sector, driven by universities".