Canada’s economy experienced a significant increase in job numbers in June, surpassing expectations and indicating a likely interest rate hike by the Bank of Canada (BoC) next week.
According to Statistics Canada data released on Friday, the country added 59,900 jobs last month, the highest since January and well above the forecasted gain of 20,000. However, the unemployment rate rose from 5.2% to 5.4% as more individuals actively sought employment.
The unemployment rate has risen for two consecutive months, reaching its highest level since February 2022. It remains below the pre-pandemic 12-month average.
Last month, the central bank raised its overnight rate to 4.75%, the highest in 22 years, due to concerns about persistent inflation. Further rate adjustments will depend on the latest economic indicators.
While the average hourly wage for permanent employees increased by 3.9% compared to June 2022, it marked the smallest wage growth in 14 months. The notable job gains in June were primarily in full-time employment, with men aged 15 to 24 and the core 25 to 54 age group experiencing the most significant improvements.
Women’s employment across all age groups remained relatively stable. The goods sector added a net total of 9,800 jobs within the job sectors, primarily in manufacturing. The services sector saw an additional 50,000 jobs, driven by wholesale and retail trade, healthcare, and social assistance.