10,900 jobs added in July.
The Canadian economy created 10,900 jobs in July, close to the 10,000 predicted by economists – a slowdown from previous months.
Growth in the services sector was the biggest driver of job gains, with 21,900 jobs being added there.
The unemployment rate declined to 6.3%, though this was because more people gave up looking for work.
One of the strangest things about how the Canadian economy is measured is the fact that the unemployment rate doesn’t include people who have given up looking for a job. As a result, while the actual workforce participation rate declined in July, the unemployment rate is also recorded as declining.
It’s understandable why politicians like how the unemployment rate is calculated, because the true figure would look worse and give a more realistic impression of the struggles many people are facing in the economy today.
Interest rate questions
With interest rates having been raised last month, people are taking a close look at the impact on the economy. Many are concerned that growth driven by high debt levels is unsustainable, which will lead to serious economic problems down the road as deleveraging takes hold.