Canadian job growth better than expected

The job market in Canada returned to growth in June after losing 7,500 jobs and 1,100 jobs in April and May, respectively.

The June jobs report exceeded initial analyst forecasts of adding 20,000 jobs to the Canadian market and managed to top 31,000 added jobs. Despite these strong figures, unemployment moved higher to 6%.

The rising unemployment is attributed to more Canadian women and youths seeking work, as opposed to job losses.

Meanwhile, wage growth fell from a near six-year high of 3.9% to 3.6%. However, this is still high enough to signal the Bank of Canada that the labour market is operating close to full capacity.

The Bank of Canada noted in May that “solid labour income growth” could contribute strongly to Canada’s growth this year. Therefore, leaving an upbeat forecast for the Canadian economy.

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