Canada’s economy added about 60,000 new jobs in June, substantially more than the 17,300 drop in May, and well above forecasts calling for an increase of 20,000. The unemployment rate, meanwhile, rose 0.2 percentage points to 5.4%— the highest in nearly 12 months and slightly above the 5.3% expected by economists.
Last month’s employment gains were primarily driven by full-time work, and across the wholesale and retail trade sector, healthcare and social assistance, and the manufacturing sector. Educational services reported the first monthly decline in employment since August 2022, while Canada’s construction sector saw an exodus of 14,000 jobs last month.
Even though the unemployment rate edged higher in June following a comparable increase in May, it’s still well below the pre-pandemic average of 5.7% reported in February 2020. The Bank of Canada is expected to deliver it’s rate decision on July 12, as economists forecast another 25 basis-point hike that will effectively bring the overnight rate to 5%.
Providing some relief to policy makers, though, is the slowdown in wage growth. Statistics Canada reported that average hourly wages rose 4.2% from June 2022, marking the slowest year-over-year growth in wages since May 2022.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.