Unemployment rate rises to 7%

(Fotolia)

(Fotolia)

REUTERS

, Last Updated: 11:51 PM ET

OTTAWA - The Canadian economy created a net 25,800 jobs in May, all of them part-time, but shed about 30,000 full-time positions for the second month in a row, Statistics Canada said on Friday. Market analysts on average had forecast a gain of 25,000 jobs.

The unemployment rate edged up to 7% from 6.9% in April as more people sought work. The data confirm the Canadian jobs market has effectively slowed to a crawl over the last nine months despite a strengthening U.S. economy.

Part-time jobs rose by 54,900 in May, while 29,100 full-time jobs vanished. In April, full-time employment dropped by 30,900 positions.

The six-month moving average for employment growth edged up to 3,000 in May from 2,300 in April. In the 12 months through May, only 85,500 jobs were created, the lowest year-over-year gain since the 75,700 increase in positions recorded in February 2010, when Canada was still mired in recession.

 


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