Canadian Unemployment Edges Up To 7%

OTTAWA, (UrduPoint / Pakistan Point News -9th Sept,2016) - The Canadian economy created 26,000 jobs in August, a bit better than expected amid a struggling economy, and the unemployment rate ticked higher to seven percent, the government said Friday.

The increase in unemployment occurred because "more people participated in the labor market," Statistics Canada reported. Economists had predicted 25,000 new jobs and a decline in the jobless rate to 6.8 percent from 6.9 percent in July.

The lackluster jobs numbers come at a rough moment for the Canadian economy, which contracted at an annual rate of 1.6 percent in the second quarter following a large drop in oil production caused by wildfires in the Alberta oil-sands region.

The public sector created 57,000 jobs in August "offsetting declines observed in July," Statistics Canada said. The level of private-sector jobs was little changed from July, but was up by 97,000 compared with a year ago.

The professional, scientific and technical services industry lost 23,000 jobs month-over-month. Employment rose by 22,000 jobs in August among youths age 15 to 24, with the unemployment rate little changed at 13.2 percent.

For those 55 and older, there was jobs growth of 29,000 payrolls, with unemployment unchanged at 6.0 percent. Meanwhile, those 25 to 54 saw a decrease of 25,000 jobs for the month. Their unemployment rate rose to 6.6 percent from 6.3 percent.

Geographically, the eastern province of Quebec created 22,000 jobs in August, with the jobless rate stable at 7.1 percent. Ontario -- Canada's richest and most populated province -- saw unemployment rise 0.3 percentage points to 6.7 percent with virtually no change in employment.