Canadian unemployment rate rises slightly to 7% in May

Canada'sunemployment rate rose to seven per cent in May, just 0.1 percentage point over the previous month,as many young workersentered the job market seeking summer work, according to Statistics Canada.

• 39% of unemployed have given up job search, poll suggests
• Ontario's youth unemployment among worst in Canada

Nearly 26,000 jobs were created in May, but most of thegains were in part-time work. In the past year, the Canadian economy has cranked out 86,000 jobs, a relatively low number, and most of the new work is parttime.

More people were working in educational services, agriculture and accommodation and food servicesin May, but job growth in the private sector was flat. However, on an annual basis, the private sector is responsible for most of the new work because of cuts in public sector spending.

The economy actually shed 29,100 full-time jobs in the month, but there was a gain of 54,900 part-time jobs, most of them likely temporary seasonal work. Among sectors that lost jobs, the natural resources industry declined by about 23,000, and there were about 21,000 fewer workers in finance, insurance, real estate and leasing.

Manufacturing was also down by 12,200 and construction was largely flat.

• Unemployment rates across Canada

Alberta saw the strongestgains, with 16,400 new jobs, and Newfoundland and Labrador lost 4,100 positions, but the otherprovinces saw little change in their employment rates.

More young people finding work

One brighter spot in the jobs picture was youth unemployment, which declined to 13.3 per cent.The number of working Canadiansaged15to24increased by49,000, bringing their employment to a level similar to that of May2013.

Many university and college students finish their spring term in April and seek out work for the summer.

Still, there are 1.3 million unemployed Canadians, evidence of an economy that has run out of steamafter churning out strong job gains in the first few years following the 2008-09 recession.

BMO chief economist Douglas Porter says the latest report "pounds home the point that underlying Canadian job growth remains anaemic."

"Even those modest gains are almost entirely concentrated in piping hot Alberta, with the rest of the country managing just 0.1 per centgrowth in the past year," he wrote in a note to investors.

"Combined with sluggish wages, soft hours worked, and the questionable quality of the jobs produced all adds up to a lacklustre labour market."