Canadian unemployment rate rose to 5.4% in June as economy added 60,000 jobs

OTTAWA –

Canada’s unemployment price ticked as much as 5.4 per cent in June — the very best it has been in over a 12 months.

It marked the second month in a row the unemployment price has risen as economists look ahead to softening within the labour market amid excessive rates of interest.

Statistics Canada mentioned Friday the rise got here because the financial system added 60,000 jobs in June, pushed by positive aspects in full-time work.

But with extra individuals looking for work and Canada’s inhabitants rising, the unemployment price climbed greater.

Job positive aspects had been concentrated in wholesale and retail commerce, manufacturing, well being care and social help and transportation and warehousing.

The loosening of the labour market possible comes pretty much as good news to the Bank of Canada, which is searching for indicators that its aggressive price hikes are working to chill the financial system.

The central financial institution has mentioned repeatedly that Canada’s scorching labour market is contributing to excessive inflation, elevating issues in regards to the tempo of wage development particularly.

However, Statistics Canada mentioned wage development additionally softened final month, rising 4.2 per cent from a 12 months in the past. That in contrast with a year-over-year acquire of 5.1 per cent in May.

The central financial institution is gearing up for its rate of interest determination subsequent week. Its transfer to boost rates of interest final month has led many forecasters to anticipate one other price hike on July 12.

The central financial institution hasn’t given any clear indication of its plans, saying it can make its determination primarily based on the financial knowledge.

Its key rate of interest is at 4.75 per cent, the very best it has been since 2001.