Canadian employment fell by 6,400 in June on the biggest decline in part-time work in more than four years, sustaining the view the economy is losing steam and may require another jolt of stimulus from the central bank.
The unemployment rate remained at 6.8 percent for a fifth month, Statistics Canada said Friday in Ottawa. Part-time work fell 71,200, exceeding the 64,800 gain in full-time work. Quebec posted a decline of 33,300, the most since May 2005.
June’s employment drop comes on the heels of data that show a fourth straight month of falling output and the second-largest trade deficit on record, which build a case for a faltering economy. That may lead Bank of Canada Governor Stephen Poloz to cut interest rates for the second time this year on July 15.
Private companies cut 26,300 workers, tempering gains in public-sector employment, which rose by 42,200. “We can’t say this report is horrible, it’s decent overall,” Jimmy Jean, a strategist in the fixed-income group at Desjardins Capital Markets in Montreal, said by telephone. “I don’t think it prevents the Bank of Canada from cutting next week.”
Economist Forecasts
Economists surveyed by Bloomberg News projected employment would fall by 10,000 and the jobless rate would rise to 6.9 percent. Canada’s currency was little changed at C$1.267 per U.S. dollar at 8:55 a.m. Toronto time, close to the weakest since March. The self-employment category decreased 22,200 and workers designated by Statistics Canada as employees rose 15,900.
Governor Poloz earlier this year said the shock of a plunge in crude oil prices was “front loaded” and gains in other parts of the economy would take over around the second half of this year. The central bank will update economic forecasts on July 15.
bloomberg.com
The unemployment rate remained at 6.8 percent for a fifth month, Statistics Canada said Friday in Ottawa. Part-time work fell 71,200, exceeding the 64,800 gain in full-time work. Quebec posted a decline of 33,300, the most since May 2005.
June’s employment drop comes on the heels of data that show a fourth straight month of falling output and the second-largest trade deficit on record, which build a case for a faltering economy. That may lead Bank of Canada Governor Stephen Poloz to cut interest rates for the second time this year on July 15.
Private companies cut 26,300 workers, tempering gains in public-sector employment, which rose by 42,200. “We can’t say this report is horrible, it’s decent overall,” Jimmy Jean, a strategist in the fixed-income group at Desjardins Capital Markets in Montreal, said by telephone. “I don’t think it prevents the Bank of Canada from cutting next week.”
Economist Forecasts
Economists surveyed by Bloomberg News projected employment would fall by 10,000 and the jobless rate would rise to 6.9 percent. Canada’s currency was little changed at C$1.267 per U.S. dollar at 8:55 a.m. Toronto time, close to the weakest since March. The self-employment category decreased 22,200 and workers designated by Statistics Canada as employees rose 15,900.
Governor Poloz earlier this year said the shock of a plunge in crude oil prices was “front loaded” and gains in other parts of the economy would take over around the second half of this year. The central bank will update economic forecasts on July 15.
bloomberg.com
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