NEWS

Economists predict disappointing jobs report

07/04/2013 05:23 EDT | Updated 09/03/2013 05:12 EDT
Economists expect Statistics Canada will report the Canadian economy lost 7,500 jobs in June, while the unemployment rate will remain at 7.1 per cent, following a gain of 95,000 jobs in May.

TD, which is expecting a loss of 10,000 jobs, says the weakness in the job market will likely come from a reduction in the number of students entering the job force and surveys suggesting businesses are less likely to hire new employees.

Among 20 economists surveyed by Bloomberg, estimates range from a loss of 75,000 jobs to a gain of 25,000.

The monthly job numbers from the agency have been volatile over the past three months, swinging from a loss of 54,500 to a gain of 95,000 in May. June numbers will be released on Friday.

On the whole, Canadian job growth has been slow and steady. According to Paul Ferley, assistant chief economist at RBC Economics Research, the average monthly gain of 17,700 jobs is "consistent with the pace of GDP growth of around 2 per cent likely recorded in the first half of this year."

U.S. markets are set to return from the July 4 holiday with a big jobs report. Economists are expecting a gain of 165,000 jobs, according to a survey by Bloomberg, slightly below the 175,000 jobs created in May.

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