Published: Tue, July 10, 2018
Economy | By

Economy adds 31800 jobs in June, unemployment rate rises to 6.0%

Economy adds 31800 jobs in June, unemployment rate rises to 6.0%

The economy added 31,800 positions in June and the unemployment rate rose to six per cent, from 5.8 per cent in May, Statistics Canada reported.

That was slightly higher than analysts' predictions of a 5.8 per cent rate. Average hourly wages in June rose by a healthy 3.5 percent from a year earlier.

"Canada managed to shake off the past few months of declines, and this was one of those reports where a rising unemployment rate isn't a bad thing as it was driven by more Canadians engaging with the labour force".

"Not too shabby", TD senior economist Brian DePratto said in a note.

In addition, in June, Canada added 9100 jobs full-time and 22 700 positions part-time.

Unemployment in the region was recorded at 7.9 per cent in May.

"Overall it is a good number for Canada this morning".

The latest jobs figures arrived less than a week before the Bank of Canada's next interest-rate decision.

Traders see an 85.6% chance of a hike next week, activity on worldwide markets overnight indicated.

In a separate report Friday, Statistics Canada said the country's merchandise trade deficit with the world widened in May to almost $2.8 billion. At the BoC's September meeting, the MPC predicts the central bank will hold at 1.5%, with "further increases raising [the target for the overnight rate] to 2% by July of 2019".

The data underscored the continued importance of the USA market, which took in 74.2% of all Canadian goods exports in May.

The predictions that Poloz will hike the interest rate, a move that will likely prompt Canada's big banks to raise their prime rates, come even though the economy is facing significant uncertainty. There was little change in the other provinces. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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