Canada posts job losses in May, but wages increased

This caused the unemployment rate to improve to 4.1 per cent from 4.2 per cent over the same period.

In the latest report, the jobless rate fell three-tenths to 3.9 per cent in the capital, compared to 4.2 per cent in April.

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.

B-C created thousands of jobs in the accommodation and food services sectors in May, bolstering national employment numbers and helping the country stick to the 5.8 per cent unemployment rate it has posted since February.

"The may employment report was slightly disastrous, but the decline shows that the labor market is in quite a predicament due to the growing pressure on wages", - said in a brief analysis, a senior economist at the Bank of Montreal's Robert Kavcic.

Jobs declined by 7,500 in May, Statistics Canada said on Friday, in contrast with economists' forecasts for a gain of 17,500 jobs. Despite the increase in the unemployment rate for the fifth straight month, the region only lost around 100 jobs from April to May.

The rate of employment in the region dropped after four straight months of increases, but only by 0.1 percent to 68.6 percent.

The loss of jobs came as the health care and social assistance sector lost 24,000 jobs, while the manufacturing sector lost 18,000. Employment in construction fell 13,000 in May.

Average hourly wages rose 3.9 per cent from a year earlier, matching a pace last seen in July 2012. That was offset in part by a gain of 23,600 part-time jobs.

The slowdown is not expected to be a major destabilizing jot to the market, as Canada has still added a net 238,000 jobs over the past 12 months.

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