Labor market conditions differ across Canada's regions as the country added 88,000 jobs in the second quarter, pointing to a return to "solid" growth, according to Bank of Montreal Capital Markets (BMO).
"Regionally, we see varying market conditions across Canada," wrote BMO Senior Economist Robert Kavcic in a note Friday, after Statistics Canada's June Labour Force data.
Ontario led employment gains in the quarter, rebounding from a similarly sized decline in the prior quarter. Despite volatility, employment is up 0.8% year over year, reflecting resilience amid trade and real estate headwinds, said the bank. Meanwhile, the unemployment rate has fallen 0.8 percentage point over the past year as immigration caps have slowed labor force growth.
Alberta and British Columbia also recorded strong employment gains, added BMO. Alberta continues to lead the larger provinces, with employment up 3.0% annually. However, the unemployment rate remains elevated as it continues to attract new workers.
Quebec remains a weak spot, with employment falling by 16,000 in the second quarter and 0.9% on the year. The largest job losses have been concentrated in construction, manufacturing and parts of the services sector.
Labor market performance across Canada's cities continues to reflect regional economic divergence, according to the bank. Resource-based cities, led by Calgary and Edmonton, remain the strongest performers, while much of southwestern Ontario and parts of B.C. continue to struggle amid trade uncertainty with the US and slower immigration-driven population growth.