In an unexpected turn of events, Canada’s economy witnessed a remarkable surge, generating a staggering 60,000 new jobs in June, surpassing analysts’ expectations. These impressive figures have prompted experts to suggest that the country’s central bank may consider raising interest rates once again in the coming weeks.
After a brief reversal, Canada’s job market resumed its upward trajectory last month, experiencing the most robust growth since January. The overall increase was primarily driven by the creation of 110,000 full-time positions across various sectors, which more than compensated for the 50,000 individuals who transitioned from part-time to inactive status, as reported by national agency Statistics Canada.
Despite the positive job growth, the unemployment rate edged up from 5.2 percent to 5.4 percent, reaching its highest level since February 2022. However, it is important to note that the rate remains in close proximity to the historic low of five percent. Royce Mendes, an analyst at Desjardins Bank, attributed the slight increase in unemployment to the continuous growth in Canada’s working-age population, suggesting that the expanding labor force would eventually alleviate the reported labor shortages faced by employers.
The recent data has opened up possibilities for the Bank of Canada to further raise interest rates. RBC analysts believe that the country’s economic growth and consistent core inflation readings have not shown any significant signs of weakness to deter the central bank from proceeding with its plans. Earlier in June, the Bank of Canada raised its key rate by a quarter percentage point to 4.75 percent, making it the first major central bank to pause its rate hikes for three months.
Moreover, the average hourly wage for Canadian employees witnessed a year-on-year increase of 4.2 percent, reaching Can$33.12 (US$24.95) in June. Statistics Canada highlights that this marks the slowest year-over-year growth in average hourly wages since May 2022. The growth in job opportunities was primarily observed in the wholesale and retail sectors, contributing to the creation of 33,000 jobs, closely followed by the manufacturing sector, which added 27,000 jobs.
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In conclusion, Canada’s remarkable job growth in June reflects the country’s thriving economy and offers promising prospects for employment. The surge in new jobs, coupled with the potential for further interest rate hikes, indicates a stable and robust economic landscape. As Canada continues to attract skilled professionals from around the world, DEV Immigration stands ready to facilitate the immigration process, ensuring a seamless transition into the Canadian workforce. Embrace the opportunities presented by Canada’s flourishing job market and make your mark in a country known for its inclusive society and prosperous economy.