Canadian Economy Loses 5,000 Jobs, As Growth Outlook Dims

Daily Forex Fundamentals | Written by DailyFX | Jul 11 08 11:35 GMT |


The Canadian economy lost 5,000 jobs in June, which was the first time since December 2007, pushing the unemployment rate to 6.2%. The economy has started to whither from the headwinds of the U.S. slowdown and the financial crisis. The recent commodity boom has propped up the economy, but the declining manufacturing sector and slowing domestic growth have led employers to cut jobs. June also saw the recent trend of replacing fulltime workers (-39,200) for part-timers (+34,200) continue, as the growth outlook dims. Despite the slowing economy some industries remain strong with professional and scientific services adding 37,100 jobs, but that couldn’t prevent the overall service sector from losing 5,400 jobs. Governor Carney surprised markets at the last monetary policy meeting by holding rates steady, as headline inflation rising to 2.2% has become a concern for the central bank. However, if job losses continue to mount the MPC may need to return to their easing policy.

DailyFX