Canada added 'modest' 6,600 jobs in July

Canada's overall labour market didn't change very muchin Julyas the economy created 6,600 additional jobs, Statistics Canada reported today.

That was roughly in line with the 5,000 new jobs that economists had been forecasting.

• Jobless numbers to play larger role in long election: Don Pittis

• U.S. employers add 215,000 jobs in July, unemployment rate steady at 5.3%

The unemployment rate remained at 6.8 per cent for the sixth straight month.

Manufacturing remains weakas another 4,600 factoryjobs disappeared in July. Job gains were concentrated in the services-producing sector.

Several economists called it a mixed reportbut said the numbers still don't cry "recession."

"Make no mistake, this is not a strong report ... but it's also not notably weak," said BMO chief economist Douglas Porter. "While many have been quick to label this year's economic performance a recession, the job numbers just haven't backed that up."

CIBC World Markets economist Nick Exarhossaid much the same thing in a morning commentary, saying the data"isn't yet pointing to Canada being in recession," noting that11,000 jobs have been added over a periodwhichincluded a major downturn in the oil and gas sector.

Canada's GDP declined in each of the first five months of the year. But exports surged in June, suggesting to some observers that the economy may be in the early stagesof a rebound from its oil-related slump.

• Canada's trade deficit narrows dramatically as exports surge
• Canada's economy shrank by 0.2% in May, boosting recession fears

Nationally,theeconomy has churned out 161,400 jobs in the last 12 months, with more than 100,000 jobs added so far this year.

Part-time jobs rise

The overall growth in jobs in July wasdue to a big gain in the ranks of the self-employed. Self-employmentgrew markedly, adding40,500 workers in that sector, while there werelosses in the public sector (down by 5,800 jobs) and especially the private sector(down 28,100 jobs).

DavidMadani, of Capital Economics, said that doesn't paintarosy economic picture for the months ahead.

"The slowdown in private-sector hiring suggests that the economy has lost some momentum," he said in a note to clients. "Unfortunately, with oil prices tumbling again and businesses likely to make deeper cuts in investment, employment prospectsappear to be deteriorating."

The ranks of part-timers rose last month, Statistics Canada said. The economy added23,900 part-timejobs. The number of full-time jobs fell by 17,300.

Men aged25to54 were the primary beneficiaries of more work, while Statistics Canada said there was little change among other groups.

Employment rose in Quebec,Nova Scotia, and British Columbia, but droppedin Saskatchewan, Manitoba, Prince Edward Island, Newfoundland and Labrador, New Brunswickand Alberta. Alberta saw its jobless rate climb 3/10thsof a percentage point to six per cent as more people entered the labour force looking for work.Employment was unchanged in Ontario.

Saskatchewan, despite seeing its jobless rate rise by half a percentage point from June, stillenjoys the lowest jobless rate in the country, at 5.2 per cent.

Newfoundland and Labrador's unemployment rate remains the highest, at 11.9 per cent.

No interest rate impact seen

Several analysts pointed out that last month's job gains essentially reversed the 6,400 jobs the Canadian economy had shed in June.

TD economist Randall Bartlett said this "modest"jobsreportsuggestsno interest rate changes are likely any time soon, as itshowsaneconomythat is "evolving broadly in line with the Bank [of Canada]'s expectations, and as such is likely to support the central bank remaining on the sidelines for the foreseeable future."

Canada's job gains have lagged the U.S., with Canada seeing employment rise by 0.9 per cent in the past year. The number of U.S. jobs, by contrast, has risen by 2.1 per cent overthe same period.