Published: Sun, June 10, 2018
Finance | By Claude Patterson

Unemployment drops in Calgary while national rate remains steady

Unemployment drops in Calgary while national rate remains steady

Last month's gain of 1,200 jobs was the smallest increase since last October and was spread out across multiple sectors. The region's largest employer, the federal government, added 400 positions, while the closely watched tech sector added 300 positions.

Canada's employment dropped in the month of May.

The Canadian labour market is coming off of a robust 2017 and economists expect the pace of job creation to slow this year.

Bank of Montreal senior economist Robert Kavcic said the wage growth suggests a strong labour market in Canada and an economy running near potential.

"It reinforces the idea that the labour market is really pushing full employment and tightening up enough to drive wage growth", he said.

The rate of employment in the region dropped after four straight months of increases, but only by 0.1 percent to 68.6 percent. "All told, there is little in today's report to alter our view that the Bank remains likely to hike its policy rate in July, switching into "hold and assess" mode thereafter", stated TD Economics in a research report. 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.

Canada shed 7,500 jobs last month on the back on full-time employment, as this was only partially offset by an uptick in part-time employment. On a sector basis, goods-producing industries led the way down, with an 18,300 decline in manufacturing jobs and a 13,000 drop in construction.

Elsewhere the gainers in May were: Professional services (up 3,500 jobs compared to April), transportation & warehousing (up 2,100), business services (a gain of 2,100) and construction (up 1,900).

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