News released half an hour ago

Toronto, Friday,
June 10, 2005. Canadian employment rose by 35,000 jobs in May, the second
straight monthly increase, and much larger than the consensus forecast of
12,500. The unemployment rate stayed steady at 6.8% as more people entered the
labour force.
Both full-time and part-time employment rose in May. Year to date, full-
time employment is up 0.5% (63,000 jobs), while part-time is up 0.9% (28,0000
jobs). After falling last month, trade employment rose by 45,000 jobs, now up
3.9% in the past 12 months. Most of May"S increase was in motor vehicle parts,
parts retailing, food & beverage wholesaling/retailing and machinery, equipment
& supplies wholesaling. Transportation and warehousing gained 25,000 jobs,
mostly in trucking. Business, building and other support services gained 16,000
jobs, but this sector is flat over the past 12 months. Agricultural employment
gained 15,000 jobs, mostly in Ontario and Quebec. This sector is up 8% year to
date, with increases in nursery and greenhouse jobs offsetting decreases in
cattle farming jobs.
Natural resources added 9,000 jobs in May, in mining and oil and gas, and
mainly in Alberta and Ontario. Employment in this sector is up 11.2% since April
2004.
Manufacturing, on the other hand, continued to lose jobs in May, down
19,000, mostly in Ontario. Manufacturing jobs are down 4% (-91,000) in the past
12 months. Education sector jobs fell by 18,000 in May, offsetting some of the
increases of the past few months. Quebec and Alberta had the biggest losses.
Construction employment also fell in May, shedding 15,000 jobs. Despite that,
construction employment is still up 6.3% (+59,000) since May 2004, with over
half the increase in B.C.
Regionally, Ontario posted its 4th straight monthly gain (+32,000 jobs),
and is +0.9% YTD. May"s gains were all full-time jobs. Ontario continues to show
weakness in manufacturing: -17,000 in May, -24,000 YTD (-2.2%). BC employment is
+18,000 in May, up 2% YTD, the highest growth rate of any province. Most of the
BC gains were in public administration and transportation. BC unemployment fell
to 5.7%, the second lowest ever in BC. Alberta gained slightly in employment,
and unemployment fell to 3.5%. Quebec lost 27,000 full-time jobs, and
unemployment stands at 8.5%.
The market was anticipating a big drop in new jobs, and bonds will get hit
on this release. - harry.koza@thomson.com

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Chandresh

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