Canada's economy unexpectedly lost 6,400 jobs in July, entirely in part-time jobs, while the unemployment rate rose to 5.5%, Statistics Canada data showed on Friday.
Analysts polled by Reuters had forecast a gain of 21,100 jobs and the unemployment rate to rise to 5.5% from 5.4% in June.
While the headline numbers showed some slowdown, average hourly wages for permanent workers , the closely watched figure by the Bank of Canada rose by 5.0% from July 2022. This was higher than the 3.9% annual increase in June, but lower than the 5.1% annual increase in May and 5.2% in April.
Canada's labor market, supported in part by strong immigration, has remained firm even as the Bank of Canada has raised its key overnight rate ten times since March 2022 to cool the economy.
Including the loss in July, Canadian monthly job growth averaged 22,000 this year, Statscan reported.
A total of 8,100 jobs were lost in part-time employment, more than the marginal gain in full-time employment.
The goods sector lost a total of 27,500 jobs, driven by construction jobs, while the services sector gained 21,200 jobs, helped by increases in the health care and social assistance industries and education services.
