Canadian jobs

The unemployment rate remained at 6.9% last month, Statistics Canada said Friday, but the participation rate — those still actively looking for work — eased to 66.1% in April from 66.2% the previous month.

Hardest hit in April were full-time positions, down by 30, 900, and mainly in the private sector, which lost 28, 600. Economists had forecast an increase of up to 17, 000 new jobs last month, with the median estimate closer to 12, 000.

The Canadian dollar took an initial hit after the employment report, falling to around US91.86¢, from the previous day’s close of US92.40¢. It recovered slightly in later trading.

“This employment report, coming out a week after the U.S. [job data], enables for more of a reaction, ” said Ken Wills, a currency analyst at CanadianForex.

“We’ve got such a thin data day, there’s nothing else out of the U.S., whereas if this number had of come out similar to last month’s — at the exact same time the U.S. number — it may have been overshadowed by that immensely, ” he said. “The timing on this definitely causes the market to jump, like it did. Now, it seems to be digesting it.”

Overall, the biggest job losses in April were in the accommodations and food services sector, with most of those declines coming in Quebec, Ontario and British Columbia.

Weakness in manufacturing reappeared in April after some recent moderate gains, while hiring in the construction sector — another industry that has struggled to maintain momentum — was flat.

April’s total decline in employment was the biggest since December of last year, when 44, 000 people were out of work.

The drop clawed back many of the gains from the previous month, when 42, 900 positions were added.

However, the volatile nature of the labour force has also been evident throughout the year. For example, there were 7, 000 fewer people with jobs in February, following a gain of 29, 400 in January.

“There has been little overall employment growth in Canada since August 2013, ” Statistics Canada said. “On a year-over-year basis, the number of people working rose by 0.8%, or 149, 000, evenly split between part-time and full-time work.”

The disappointing April report could point to weaker-than-expected economic growth in the second quarter, currently pegged by the Bank of Canada at 2.5% and leading to the same level for 2014 overall.

Bank governor Stephen Poloz and his policy team could now be more likely to keep its benchmark lending rate — now a 1% —on hold until late 2005.
Andrea Ziegler, vice-president of marketing for job site Workopolis, said “what we’ve seen is this sort two-steps-forward, one-step-back type of growth.”

But “the continuing story in the West is one of being the growth engine of the country in terms of jobs, ” she said.

“But Ontario had good news in April, as well.” she added. Workopolis saw the highest gain in full-time employment since August 2013. “It really mirrors the activity in job postings, which also saw a 24% increase this month — the largest increase after the West.”