* Canada lost 400 jobs in June, says Statistics Canada
* Flat June number follows 95,000 new jobs in May
* All June job losses are full-time positions
By David Ljunggren
OTTAWA, July 5 Canada shed just 400 jobs in
June, indicating the economy had managed to hang on to most of
the massive gains it made in May's blowout report, Statistics
Canada said on Friday.
Market analysts had predicted a loss of 2,500 jobs after
May's huge 95,000 new positions, the second highest increase on
record. The jobless rate in June stayed steady at 7.1 percent.
The economy lost 32,400 full-time positions in June while
adding 32,200 part-time jobs. In theory, this means the net loss
was 200 jobs. Statscan, however, says it is sticking with a net
loss of 400 jobs and says the discrepancy is due to rounding.
"The fact that full-time jobs retreated ... is the one major
downbeat note, but of course that followed a massive increase
the previous month," said Doug Porter, chief economist at BMO
"Pretty much every number here has to be put in the context
of just the enormous gains seen in May, and overall maybe the
good news is that the job market continues to hold on to most of
those gains," he told Reuters.
Canada's jobs data have a large margin of error and can be
volatile. A more accurate gauge is the average monthly
employment growth, which for the first six months of 2013 was
14,000 compared with the average of 27,000 recorded in the
second half of 2012.
The jobs data indicate underlying strength in Canada's
economy, which has showed signs of slowing in recent months amid
continuing uncertainty in major export markets such as the
United States and the European Union.
The figures came out at the same time as a positive U.S.
jobs report, which helped push the Canadian dollar
down to a 21-month low against its U.S. counterpart. The dollar
weakened to C$1.0584, or 94.48 U.S. cents, down from Thursday's
close of C$1.0521, or 95.05 U.S. cents.
Employment in professional, scientific and technical
services grew by 27,000 while accommodation and food services
shed 20,000 posts, and information, culture and recreation lost
Craig Wright, chief economist at the Royal Bank of Canada,
said the June jobs data were not particularly robust but not
terribly worrisome either.
"I think any direction today in the markets is taking its
cue from what's going on in the United States," he told Reuters.
Statscan said much of its June labor force survey had been
completed by the time major floods hit southern Alberta. The
disaster had had little effect on the June data, it said.
"In July, questions on the impact of the floods on hours
worked will be added to the ... survey, with estimates to be
released in mid-August," the agency said in its daily release.