Workers are pictured at the Vancouver Shipyard in North Vancouver on October 7, 2013. THE CANADIAN PRESS/Jonathan Hayward

Economy adds 31,800 jobs in June, unemployment rate rises to 6.0%

The latest jobs figures arrived less than a week before the Bank of Canada’s next interest-rate decision.

A healthy gain of 31,800 jobs last month wasn’t enough to keep the country’s unemployment rate from rising to six per cent as more people searched for work, Statistics Canada said Friday.

The agency’s latest labour force survey shows the jobless rate for June increased from 5.8 per cent in May to break the six per cent barrier for the first time since last October, when it was 6.2.

The unemployment rate moved up last month despite the addition of new jobs because nearly 76,000 more people entered the workforce.

The report also found that average hourly wage growth, which is closely watched by the Bank of Canada, remained strong last month at 3.6 per cent. The number, however, did come down from its nine-year high in May of 3.9 per cent.

The latest jobs figures arrived less than a week before the Bank of Canada’s next interest-rate decision.

Expectations have strengthened that governor Stephen Poloz will raise the benchmark for the first time since January. Experts predict the move even though the economy is facing significant uncertainty from Canada’s intensifying trade dispute with the United States as well as growing fears of a global trade war.

Related: Economy expands 1.7% in fourth quarter of 2017

Related: Economic outlook projects stable growth for B.C.

Compared with a year earlier, overall employment was up 1.2 per cent following the creation of 214,900 jobs, which was driven by 284,100 new full-time positions.

A closer look at the June numbers shows Canada added 9,100 full-time jobs in June and 22,700 part-time positions. The public sector gained 11,800 jobs and the private sector lost 2,000.

The goods-producing sector added 46,600 positions in June thanks to job-creation boosts in construction, natural resources and manufacturing.

Services sectors, meanwhile, lost 14,700 jobs mostly because of big decreases in accommodation and food services positions as well as wholesale and trade.

Ontario added 34,900 jobs for an increase of 0.5 per cent compared with the previous month, while Saskatchewan posted its largest monthly gain in over six years with the creation of 8,300 positions, which represented 1.5 per cent growth.

Youth unemployment increased to 11.7 per cent last month, up from 11.1 in May.

In a separate report Friday, Statistics Canada said the country’s merchandise trade deficit with the world widened in May to nearly $2.8 billion. The international trade deficit was about $1.9 billion in April and $3.9 billion in March.

The May numbers show that imports expanded 1.7 per cent, while exports dipped 0.1 per cent.

Higher imports in May of aircraft, other transportation equipment and energy products fuelled most of the increase. The figure for aircraft imports more than tripled to $937 million due to the purchase of several air liners from the U.S.

Exports declined mostly because of weaker trade on motor vehicles and parts as well as metal ores and non-metallic minerals.

The report showed that Canada’s trade surplus with the U.S. narrowed to $3.3 billion in May, from $3.7 billion April, as more imports headed north across the border and south-bound exports decreased.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Biologists discover another female calf in depleted South Purcell Mountain Caribou herd

Calf will be moved to Revelstoke maternity pens, then released

Man seriously hurt after police shooting near Nelson

Incident has been reported to provincial police watchdog

Snow storm hits East Kootenay

Fernie expected to get the most accumulation at roughly 20-25 centimetres by the end of the day

Vigil in Kimberley for lost caribou herd

With removal of last females herd is effectively gone

VIDEO: Historic night in Red Deer as 2019 Canada Winter Games kicks off

Star-studded Opening Ceremony features athletes from across Canada

No Center of Gravity festival in Kelowna this summer: organizers

COG organizers said the hope is to return to the Okanagan in 2020

Eight cases of measles confirmed in Vancouver outbreak

Coastal Health official say the cases stem from the French-language Ecole Jules Verne Secondary

Plecas won’t run in next election if B.C. legislature oversight reforms pass

B.C. Speaker and Abbotsford South MLA says he feels ‘great sympathy’ for Jody Wilson-Raybould

Workshop with ‘accent reduction’ training cancelled at UBC

The workshop was cancelled the same day as an email was sent out to international students

Former B.C. premier Gordon Campbell accused of sexual touching

Accuser went to police, interviewed by Britian’s Daily Telegraph

Judge rules Abbotsford home must be sold after son tries to evict mom

Mom to get back down payment and initial expenses

Trump officially declares national emergency to build border wall

President plans to siphon billions from federal military construction and counterdrug efforts

Snow turns to slush, rain as it warms up across B.C.’s south coast

Some areas are already covered by more than half a metre of snow following three separate storms

Most Read