Canada employment dips in June. Still above pre-Covid levels
- Prior report 39.8 K (was higher than the 30 K estimate)
- Employment change -43.2K vs 23.5 K estimate
- Unemployment change 4.9% vs. 5.1% estimate. Last month 5.1%. The unemployment rate hit a record low for the 4th consecutive month.
- Full-time employment -4.0KK vs 135.4 K last month.
- Part-time employment -39.1K vs -95.8 K last month
- participation rate 64.9% vs 65.3% last month.
- Average hourly earnings rose 5.2% on a year-over-year basis up from 3.9% in May and 3.3% in April.
- Service producing jobs fell by -76K. Retail trade fell -58K. Social assistance -20 K. Information culture and recreation -14 K. Educational services -14 K. Public administration +15 K
- goods producing jobs +33K, led by gains in construction and manufacturing. Construction +23K. Natural resources -20K
- total hours worked increase 1.3% June
- total number of unemployed workers fell by -54,000 to 1 million
The good is the unemployment rate fell to 4.9% a new record low as fewer people search for work. The not so good news is the employment change fell by -43.2% with most of the declines in the part-time employment. Full-time employment fell marginally.
A decline in service producing sector (minus 76K) – particularly in retail trade – was moderated by gains in good producing sector (+30 3K)
The USDCAD was trading at 1.2987 before the Canada and US jobs reports. The USDCAD is trading higher at 1.30246 after the combination of stronger US jobs and weaker Canada jobs.
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