Canada economy sheds 2,200 jobs in June after two months of gains

OTTAWA: Canada's economy shed a net 2,200 jobs in June after two months of gains and the unemployment rate edged up to 5.5% as more people joined the workforce, Statistics Canada said on Friday.

Analysts in a Reuters poll had predicted a gain of 10,000 jobs from May and an unemployment rate of 5.5%. May's jobless rate of 5.4% had been the lowest since comparable data became available in 1976.

June saw the creation of 24,100 full-time jobs but this was canceled out by a loss of 26,200 part-time positions. The economy created a record 106,500 jobs in April and added another 27,700 in May.

The average hourly wages for permanent employees - a figure closely watched by the Bank of Canada - jumped by 3.6% in June, the largest year-on-year gain since the 3.9% increase seen in May 2018.

The jobs figures were the last set of major economic data before the Bank of Canada's interest rate announcement on Wednesday. The central bank has not raised rates since October and market analysts expect it to stay on the sidelines.