B.C.’s losing streak continues with another consecutive month of job losses.
West Coast employment fell by 9,700 positions in June, according to Statistics Canada data released on Friday.
Of those losses, 3,100 were full-time positions.
Unemployment fell by 0.4 percentage points to 5.2 per cent, indicating more British Columbians are leaving the workforce altogether.
Despite the overall losses, B.C.’s wholesale and retail trade sector got a big boost (+14,000 jobs), as did construction (+6,900 jobs).
But the tech sector took a huge hit, shedding 15,400 jobs. Health care saw 6,400 jobs lost.
Meantime, Canada as a whole lost a mere 1,400 jobs but the unemployment rate crawled upwards by 0.2 percentage points to 6.4 per cent – the highest levels in more than two years. This indicates Canada’s workforce has been growing, with more people seeking out jobs.
CIBC senior economist said in a note there are few signs of population growth slowing and that the recent trend of job growth falling short of population is likely to continue for a few more months.
TD senior economist Leslie Preston said the softening labour market likely contributed to the Bank of Canada's confidence last month that it was time to start lowering interest rates.
“After today's reading, financial markets have increased their odds to greater than 50 per cent that the next cut is coming at their July 24th decision,” she said in a note.
BMO chief economist Douglas Porter said the latest data drives home the point the national labour market can no longer be considered tight.
“In fact, it is quickly tipping in the other direction,” he said in a note.
“The softening job market raises the odds of a Bank of Canada rate cut.”
