Canada's unemployment rate in May remained for a fourth consecutive month at a 33-year low of 6.1 per cent.
Job growth increased by only 9,300 positions overall, Statistics Canada reported Friday. Growth in full-time work expanded by 32,700, but part-time employment declined last month by 23,400.
The employment growth was slightly below the forecasts of economists, who had been expecting job growth close to 14,300, and for the unemployment rate to hold steady at 6.1 per cent.
May's slim job growth compares with a loss of just over 5,000 jobs in April.
Across the country, the construction sector added 21,900 jobs, while the information, culture and recreation sector added 16,300 positions. Employment in accommodation and food services grew by 15,300.
The trade sector shed 20,300 jobs, while the hard-hit manufacturing sector lost 12,300 workers.
Eyes on dollar, interest rates
Economists said the latest jobs report likely won't do much to lessen the sentiment that Canadian interest rates are on the way up.
"Today’s mixed employment report may take some of the heat out of the burning loonie and steaming bond yields, at least in passing," said BMO Capital Markets economist Douglas Porter.
"However, even with cooler job growth, the fact remains that the jobless rate is still at a secular low and wage pressures continue to gradually grind higher. In other words, this result is not soft enough on its own to keep the bank from raising rates."
But the Canadian Labour Congress says well-paying manufacturing jobs are being replaced by lower-paying service jobs, with the result that the Canadian economy isn't as well off.
"Yes, there are jobs out there, but it's clear the quality of new jobs being offered to Canadians month after month pale in comparison to the jobs that are being lost," said CLC president Ken Georgetti. "I think people deserve better."
TD Bank economist Beata Caranci said the combination of a cooling U.S. economy and a high Canadian dollar will keep manufacturing and export-oriented jobs at risk.
Statistics Canada also said that the summer job market started on a positive note, with 33,000 more students employed in May compared to a year ago.
The employment rate for students who were in school full time in March and plan to return to classes in September reached 47.2 per cent in May, the highest rate in 16 years.
