The Canadian economy unexpectedly shed a net 6,400 jobs in July while the jobless rate ticked up to 5.5%, data showed on Friday, cementing analyst expectations that the Bank of Canada will pause its interest rate hike campaign.
The Canadian economy unexpectedly shed a net 6,400 jobs in July while the jobless rate ticked up to 5.5%, data showed on Friday, cementing analyst expectations that the Bank of Canada will pause its interest rate hike campaign.
Analysts polled by Reuters had forecast a net gain of 21,100 jobs and for the unemployment rate to edge up to 5.5% from 5.4% in June.
The labor market, supported in part by strong immigration, has until now been resilient even as the central bank raised its key overnight rate ten times since March 2022.
The Bank, fretting about inflation still well above its 2% target, lifted rates in June and July and said it would study data closely before moving again.
Doug Porter, chief economist at BMO Capital Markets, said there were real signs the economy was starting to soften and noted the unemployment rate had increased by six tenths of a percentage point since July 2022.
Royce Mendes, director and head of macro strategy at Desjardins, said “today’s data reinforce our view that the central bank is done raising rates for this cycle.”
Stephen Brown, deputy chief North America economist at Capital Economics, said the jump in year-over-year wages was unlikely to be sustained.
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This is the best summary I could come up with:
Analysts polled by Reuters had forecast a net gain of 21,100 jobs and for the unemployment rate to edge up to 5.5% from 5.4% in June.
The labor market, supported in part by strong immigration, has until now been resilient even as the central bank raised its key overnight rate ten times since March 2022.
The Bank, fretting about inflation still well above its 2% target, lifted rates in June and July and said it would study data closely before moving again.
Doug Porter, chief economist at BMO Capital Markets, said there were real signs the economy was starting to soften and noted the unemployment rate had increased by six tenths of a percentage point since July 2022.
Royce Mendes, director and head of macro strategy at Desjardins, said “today’s data reinforce our view that the central bank is done raising rates for this cycle.”
Stephen Brown, deputy chief North America economist at Capital Economics, said the jump in year-over-year wages was unlikely to be sustained.
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