Ottawa, BC, Canada (4E) – Canada’s economy created 200 new jobs in July, according to a report by Statistics Canada released Friday in Ottawa, leaving many job hunters to abandon their search because of the country’s weak labor market.
Last month, 35,400 more people dropped out of the labor market, reducing the participation rate to 65.9 percent, the lowest level since October 2001. The reduced workforce was the biggest factor in the decline of the jobless rate to 7 percent from 7.1 percent.
Economists forecast a gain of 20,000 jobs and a 7.1 percent unemployment rate, according to a survey by Bloomberg News.
Employment has been flat at around 17.8 million in 2014, ending a hiring surge that helped the world’s 11th largest economy emerge from a recession in 2009.
Last month, the Bank of Canada said the weaker workforce participation is an indication of idle capacity in the economy.