Canada | Unexpected rise of unemployment to 7.1%

An unexpected rise of unemployment to 7.1% was recorded in June, announced a couple of days ago the Statistical Service of Canada. According to these figures the Canadian economy lost 9,400 jobs last month. The unemployment rate in June reached so high in six months, according to the Statistics of Canada. In the same source, the young and the Ontario province suffered the heaviest blows.

Ontario, Canada

Ontario, Canada

These disappointing figures caused surprise to economists, who had expected that jobs would increase by 20,000 last month, while they had increased by 26,000 in May. In contrast, in the state they recorded a loss of 34,000 job positions. The news of June added the big picture shows that Canada has created 72,000 jobs within 12 months, the lowest number since 2010.

Canada

Canada

In Ontario, the unemployment reached up to 7.5%, where the most jobs lost by the industry (total 13,600), although economists had expected just the opposite, an increase in employment due to the local elections.

The unemployment picture is not encouraging for the Canadian economy as a whole. A stem at Capital Economics noted that the data are causing shock and reveal that the Canadian economy faces real difficulties, particularly in terms of competitiveness.

Canada Unemployment

Canada Unemployment

One of the positive aspects was that most new jobs were full time (33,500), which has offset partially the job losses, which were mostly part time (43,000). Furthermore, the hourly wage rose by 1.9% compared with a year ago, said that the federal public service of Canada.

Unemployment

Unemployment

The new jobs that were removed was 44,000, a number that essentially marked the annihilation of increasing youth employment which was recorded in May.

By Nicole P.

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