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Canada’s economy shed 2,800 jobs in July, leaving the national unemployment rate unchanged at 6.4%, according to Statistics Canada. Despite the job losses, wage growth remained robust, with average hourly wages increasing by 5.2% compared to last year. The Bank of Canada, concerned about the labor market, recently cut its key interest rate to 4.5% and may implement further reductions, with some analysts predicting three more cuts by year’s end.
Certain groups, including students and recent immigrants, are feeling the job market’s strain more acutely. The unemployment rate for recent immigrants has risen by 3.1 percentage points over the past year, and around 50% of students were unemployed last month. A senior economist at Indeed noted that employers are opting to hire fewer new workers rather than laying off existing employees, disproportionately affecting these vulnerable groups.
Meanwhile, the Brantford-Brant region saw its unemployment rate rise to 6% in July, a 0.3 percentage point increase from the previous month. Despite this, the area’s jobless rate remains lower than most surrounding regions, with only Guelph reporting a lower rate at 3.9%. Job losses in Brantford were primarily concentrated in the manufacturing and educational services sectors.
Danette Dalton, executive director of the Workforce Planning Board of Grand Erie, highlighted a slowdown in hiring, particularly for part-time roles, which has led to fewer opportunities for youth and older workers.
Written by Jeremy Hall