Canadian unemployment rate rose to 5.4% in June as economy added 60,000 jobs
CTV
Canada's unemployment rate ticked up to 5.4 per cent in June -- that's up from 5.2 per cent in May and the highest it's been in over a year.
The Canadian labour market is showing some signs of softening as the unemployment rate rises and wage growth slows, but with another sold job gain last month, forecasters are still expecting a rate hike next week.
Statistics Canada reported Friday the economy added 60,000 jobs in June, driven by gains in full-time work.
But as more Canadians searched for work and the population continued to grow, the unemployment rate climbed higher to 5.4 per cent, the highest it's been in a year.
"The reason the unemployment rate can rise alongside historically strong employment growth is that population growth continues to set new records -- including an 84k monthly increase in June," wrote RBC assistant chief economist Nathan Janzen in a note to clients.
June marked the second month in a row the unemployment rate has risen as economists watch for softening in the labour market amid high interest rates.
Job gains were concentrated in wholesale and retail trade, manufacturing, health care and social assistance and transportation and warehousing.
The loosening of the labour market likely comes as good news to the Bank of Canada, which is looking for signs that its aggressive rate hikes are working to cool the economy.