Canada unexpectedly loses 2,800 jobs in July
CTV
Canada's economy shed a net 2,800 jobs in July, as gains in full-time work were offset by part-time job losses, while the unemployment rate remained at a 30-month high of 6.4 per cent, data showed on Friday.
Canada's economy shed a net 2,800 jobs in July, as gains in full-time work were offset by part-time job losses, while the unemployment rate remained at a 30-month high of 6.4 per cent, data showed on Friday.
Analysts polled by Reuters had forecast a net gain of 22,500 jobs and the unemployment rate to rise to 6.5 per cent from 6.4 per cent in June. An increase in the unemployment rate was expected due to rapid population growth which the labor market was not able to absorb.
The numbers came after a jump last week in the unemployment rate in the U.S., Canada's biggest trading partner, where a three-year high jobless rate roiled markets and stoked fears of recession.
Financial markets penciled in an almost 50 basis point cut in U.S. interest rates and stocks tumbled along with bond yields.
In Canada, money markets have priced in another 25 basis point cut at the Bank of Canada's next rate announcement on Sept. 4, with almost three cuts by year end.
Economists saw the Friday jobs report as having minimal effect on the trajectory of rate cuts in Canada, as the numbers still pointed towards a weakening economy.
"This report is broadly neutral in my eyes and changes little for the path of rates ... the Canadian economy is weak, inflation is on track, and the Bank of Canada needs to get a move on (in) cutting rates," said Kyle Chapman, FX Markets Analyst at Ballinger Group.
