Canada July employment change -2.8K vs +22.5K expected

• Prior month -1.4K
• Employment change -2.8K vs +22.5K expected
• Unemployment rate 6.4% vs 6.4% expected (up 0.9% y/y)
• Prior month employment rate 6.4%
• Full-time employment +62.0K vs -3.4K prior
• Part-time employment -64.4K vs +1.9K prior
• Participation rate 65.0% vs 65.3% prior
• Average hourly wages y/y 5.2% vs 5.4% last month

These are back-to-back negative numbers, though they’re mitigated somewhat by the gain in full time jobs. That said, the unemployment rate would have risen notably if not for the sharp drop in participation.

USD/CAD has been volatile in the aftermath but I see this as a clear sign of slowing. Combine it with the latest RBC spending tracker and it’s abundantly clear that Canada’s economy is turning lower.

Key changes by industry:

• Wholesale and retail trade: -44,000 (-1.5%)
• Finance, insurance, real estate, rental and leasing: -15,000 (-1.0%)
• Public administration: +20,000 (+1.6%)
• Transportation and warehousing: +15,000 (+1.4%)
• Utilities: +6,200 (+4.2%)

Here is the kicker:

• Public sector +41K
• Private sector -42K

Year-over-year:

• Public sector +205K
• Private sector +86K

This article was written by Adam Button at www.forexlive.com.