Canada’s Unemployment Rate Falls To 6.9%

Canada’s unemployment rate dipped to 6.9% in June as the labour market added a net 83,000 jobs during the month. Both the number of new jobs and unemployment rate in June surprised to the upside, topping the consensus expectations of economists.A Reuters poll of economists had forecast the jobless rate would rise to 7.1% in June as employment levels slumped across the country.Statistics Canada said that the unemployment rate declined by a tenth of a percentage point to 6.9% during June.However, the majority of jobs created were in part-time, seasonal work, with 47,000 positions added in the private sector.The June data reverses a recent slowdown in Canada’s labour market, with June posting the first significant job growth nationwide since January of this year. Between March and May of this year, Canada’s unemployment rate had steadily risen. Wholesale and retail trade led the June jobs growth with 34,000 new positions, mostly part-time work, followed by healthcare and social assistance with 17,000 jobs added. Only Canada’s agriculture sector faced sizable job losses during June, with 6,000 positions eliminated, according to Statistics Canada.Even the manufacturing sector, which has faced job losses in recent months amid Canada’s trade dispute with the U.S., saw a gain of 10,000 positions in June.However, U.S. tariffs are taking a toll in specific markets such as Windsor, Ontario, which had the highest unemployment rate of all census metropolitan areas in June at 11.2%. The unemployment rate for returning students, those heading back to school in the autumn, remained elevated at 17.4% in June, up from 15.8% a year earlier.The Bank of Canada’s next interest rate decision is schedule for July 30 of this year.