It’s no surprise that Canada’s economy is still managing to grind out jobs, although at a much slower space than earlier in the year, and that its closest neighbour and biggest trading partner continues to struggle to match that growth.
But what is surprising is how Canada’s public sector carried the employment load last month, and how manufacturers stumbled after a six-month run of strong job creation.
In a report peppered with good and not-so-good news, Statistics Canada said Friday that 7,300 more people were working in June, compared to the previous month’s 7,700 increase.
The Canadian numbers are a sign of health, where as the U.S. numbers are still a sign of weakness
Also, the unemployment rate edged down to 7.2% from 7.3%, as fewer people were looking for work, often a sign that some have simply given up searching.
Last month’s performance was bound to pale in comparison to the combined 140,000 jobs created during March and April — gains that were too good to last.
In United States, “The most glaring weakness in the current recovery relative to previous ones is the unprecedented public-sector job loss seen over the last three years.”
“The simplest answer is that the public sector has shed 627,000 jobs since June 2009. However, this raw job-loss figure understates the drag of public-sector employment relative to how the economy functions normally…”