Greater Sudbury added jobs last month, Statistics Canada reported Friday, with the unemployment rate coming in at seven per cent, a drop of 0.2 per cent compared with April.
StatsCan estimated 80,300 people had jobs in May, an increase of 100 from the previous month. The size of the labour force – the number of people working or actively looking for work – was steady at 86,300.
While better than April, unemployment is up compared to the same time period in 2017, when it was 6.5 per cent and the labour force was 85,800.
Friday's report said there was virtually no change in the number of people working in Ontario, where the jobless rate was pegged at 5.7 per cent, compared to 5.6 per cent a month earlier.
Nationally, Canada's economy unexpectedly lost jobs for the second month in a row, but wages posted their fastest year-over-year increase in nine years.
The economy lost 7,500 jobs in May as a drop in full-time employment was only partially offset by an increase in part-time jobs, while the unemployment rate held steady at 5.8 per cent for the fourth consecutive month.
Economists had expected an increase of 17,500 jobs, according to Thomson Reuters Eikon.
However, average hourly wages, a key indicator watched by the Bank of Canada, increased 3.9 per cent compared with a year ago, the monthly reading's largest annual increase since April 2009.
Bank of Montreal senior economist Robert Kavcic said the wage growth suggests a strong labour market in Canada and an economy running near potential.
"It reinforces the idea that the labour market is really pushing full employment and tightening up enough to drive wage growth," he said.
Kavcic said that combined with other recent economic data including a strong trade report this week, the Bank of Montreal is maintaining its forecast for the Bank of Canada to raise its key interest rate in July.
"We think the bank is still good to go," he said.
The Bank of Canada kept its key interest rate on hold in an announcement last week, but dropped a reference to remaining "cautious'." Economists interpreted the change as a hawkish signal suggesting that the next interest rate hike may be sooner rather than later.
The central bank has raised its target for the overnight rate three times since last summer and it now stands at 1.25 per cent.
The overall drop in the number of jobs came as full-time jobs fell by 31,000, offset in part by a gain of 23,600 part-time positions.
The loss of jobs came as the health care and social assistance sector lost 24,000 jobs, while the manufacturing sector lost 18,000. Employment in construction fell by 13,000.
Sectors gaining jobs included the accommodation and food services sector which added 18,000 jobs, helped by growth in British Columbia. The professional, scientific and technical services sector added 17,000 and transportation and warehousing added 12,000.
Regionally, Prince Edward Island added 800 jobs for the month, while employment in B.C. fell by 12,000 for the month.
In Quebec, a drop in full-time work was offset by a gain in part-time to leave the province little changed for the month.
On a year-over-year basis, overall employment was up by 238,000 jobs or 1.3 per cent, due to gains in full-time work.
– Files from Canadian Press
