7,500 jobs lost in May, unemployment rate holds steady at 5.8%

  • 7,500 jobs lost in May, unemployment rate holds steady at 5.8%

7,500 jobs lost in May, unemployment rate holds steady at 5.8%

Barrie's unemployment rate dropped in May, but remains one of the highest in the country. In Victoria, the rate fell to 3.9 per cent, down from 4.2 per cent in April.

Unemployment dropped in Calgary and Alberta in May, even though the national rate remained unchanged.

With average hourly wage growth, a key indicator watched by the Bank of Canada, accelerating by 3.9 per cent year-over-year - the fastest uptick in nine years - the small setback in employment should not be enough to subdue the central bank from boosting its key interest rate next month, according to some economists.

This we do know: It's the first time in a decade that the jobless rate for Ottawa-Gatineau has been below five per cent for three consecutive months, suggesting the local economy has finally recovered from the effects of the 2008-09 recession.

"And in some other strong indicators this week, the Bank of Canada should be on track to raise rates next month barring more fallout on the trade front". British Columbia has the lowest unemployment rate in the nation, while Quebec, at 5.3 per cent, and Ontario, at 5.7 per cent, had the second- and third-best unemployment rates.

The average wage per hour - main rate, which is closely following the Bank of Canada increased by 3.9% compared to the same period a year ago, the largest annual increase in this indicator since April 2009.

The decline in jobs was driven by a drop of 31,000 full-time positions, while part-time work rose by 23,600 positions.

The loss of jobs came as the health care and social assistance sector lost 24,000 jobs, while the manufacturing sector lost 18,000. The professional, scientific and technical services sector added 17,000 and transportation and warehousing added 12,000.

Regionally, Prince Edward Island added 800 jobs for the month, while employment in B.C. fell by 12,000 for the month.