Workers are pictured at the Vancouver Shipyard in North Vancouver on October 7, 2013. THE CANADIAN PRESS/Jonathan Hayward

Economy adds 31,800 jobs in June, unemployment rate rises to 6.0%

The latest jobs figures arrived less than a week before the Bank of Canada’s next interest-rate decision.

A healthy gain of 31,800 jobs last month wasn’t enough to keep the country’s unemployment rate from rising to six per cent as more people searched for work, Statistics Canada said Friday.

The agency’s latest labour force survey shows the jobless rate for June increased from 5.8 per cent in May to break the six per cent barrier for the first time since last October, when it was 6.2.

The unemployment rate moved up last month despite the addition of new jobs because nearly 76,000 more people entered the workforce.

The report also found that average hourly wage growth, which is closely watched by the Bank of Canada, remained strong last month at 3.6 per cent. The number, however, did come down from its nine-year high in May of 3.9 per cent.

The latest jobs figures arrived less than a week before the Bank of Canada’s next interest-rate decision.

Expectations have strengthened that governor Stephen Poloz will raise the benchmark for the first time since January. Experts predict the move even though the economy is facing significant uncertainty from Canada’s intensifying trade dispute with the United States as well as growing fears of a global trade war.

Related: Economy expands 1.7% in fourth quarter of 2017

Related: Economic outlook projects stable growth for B.C.

Compared with a year earlier, overall employment was up 1.2 per cent following the creation of 214,900 jobs, which was driven by 284,100 new full-time positions.

A closer look at the June numbers shows Canada added 9,100 full-time jobs in June and 22,700 part-time positions. The public sector gained 11,800 jobs and the private sector lost 2,000.

The goods-producing sector added 46,600 positions in June thanks to job-creation boosts in construction, natural resources and manufacturing.

Services sectors, meanwhile, lost 14,700 jobs mostly because of big decreases in accommodation and food services positions as well as wholesale and trade.

Ontario added 34,900 jobs for an increase of 0.5 per cent compared with the previous month, while Saskatchewan posted its largest monthly gain in over six years with the creation of 8,300 positions, which represented 1.5 per cent growth.

Youth unemployment increased to 11.7 per cent last month, up from 11.1 in May.

In a separate report Friday, Statistics Canada said the country’s merchandise trade deficit with the world widened in May to nearly $2.8 billion. The international trade deficit was about $1.9 billion in April and $3.9 billion in March.

The May numbers show that imports expanded 1.7 per cent, while exports dipped 0.1 per cent.

Higher imports in May of aircraft, other transportation equipment and energy products fuelled most of the increase. The figure for aircraft imports more than tripled to $937 million due to the purchase of several air liners from the U.S.

Exports declined mostly because of weaker trade on motor vehicles and parts as well as metal ores and non-metallic minerals.

The report showed that Canada’s trade surplus with the U.S. narrowed to $3.3 billion in May, from $3.7 billion April, as more imports headed north across the border and south-bound exports decreased.

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Canadian Surf Team take on the Americas at Pan Am Games in Peru

270 athletes from 20 countries partake in Olympic 2020 qualifier.

VIDEO: Sea of Lights parade sparkles in Tofino

Tofino Resort and Marina’s Sea of Lights provided a breathtaking holiday experience on Friday night.

Winds of up to 90 km/hr predicted to hit Vancouver Island

Environment Canada is warning that loose objects may cause damage

Trapped humpback whale freed from salmon farm near Tofino

“All of these problems could be solved by the farms moving onto land and getting out of the ocean.”

Ucluelet police searching for missing man

Ucluelet police are asking for the public’s assistance in locating a missing 29-year-old.

VIDEO: Close encounter with a whale near Canada-U.S border

Ron Gillies had his camera ready when a whale appeared Dec. 7

Humboldt Broncos, cannabis, Fortnite: Here are Canadians’ top Google searches for 2018

When celebrities died or Canada Post went on strike, Canada turned to Google

B.C. billionaires worth 5,845 times average middle-income household

Economists argue for changes to Canadian tax system benefitting rich

Condominium market still ‘a lot better’ than normal in Vancouver suburbs

The Fraser Valley, east of Metro Vancouver, has long been considered a more affordable haven for first-time homebuyers.

Retired B.C. teacher a YouTube Sudoku sensation

A retired Kelowna teacher has amassed quite the following online by teaching the art of solving a Sudoku puzzle.

UN chief returns as climate talks teeter closer to collapse

Predictions from international climate expert, warn that global warming is set to do irreversible environmental damage.

Trump’s willingness to intervene in Meng detention roils Canada’s justification

The International Crisis Group said Tuesday, Dec. 11 it’s aware of reports that its North East Asia senior adviser Michael Kovrig has been detained.

Scientist awarded $100K for work on Arctic contaminants that led to ban

Derek Muir has received the $100,000 Weston Family Prize for his research that showed those carcinogens were able to move into the Arctic.

Manhunt continues for France shooter

Suspected gunman named, had long police record

Most Read