5 important takeaways from the June jobs report

5 important takeaways from the June jobs report

The unemployment rate in the Montreal region dropped 0.4 percentage points from 6.2 per cent in May to 5.8 per cent in June, Statistics Canada said on Friday.

In Alberta, the unemployment rate increased to 6.5 per cent of the workforce from 6.2 per cent the previous month.

Job creation in the world's largest economy continued its strong pace in June with 213,000 new additions for the month - well above analyst's expectations.

The unemployment rate rose as an additional 601,000 Americans entered the labor force, meaning a strengthening labor market appears to have actually coaxed some workers back into the labor force. The jobless rate in Calgary remained steady at 7.7 per cent. With 93 straight months of job growth - a historical record - many employers have said they're feeling pressure to raise wages.

In another sign of vigorous demand for labor, the results for April and May were revised higher by a total of 37,000, bringing the average for the past three months to 211,000. Manufacturing and professional and business services saw gains, with 36,000 and 50,000 jobs added, respectively. The labor force participation rate is still hovering near historic lows. It's the 93rd consecutive month of job gains, an impressively long and strong stretch of growth.

"A 32K rise in employment was refreshing news after a couple of weak months".

U.S. Treasury yields were also slightly lower after the report, with the 10-year moving to around 2.81% after the numbers from 2.82% ahead of the report, with two-year yields falling to 2.53% from 2.54%.

Yet the tax cuts have done little to generate substantial pay growth.

The economy also faces a substantial threat from the Trump administration's trade war with China and from other, ongoing trade disputes with USA allies, including Canada and Europe.

President Donald Trump has imposed tariffs on a range of imported goods, including steel and aluminum, to protect domestic industries from what he says is unfair competition from foreign manufacturers. The public sector gained 11,800 jobs and the private sector lost 2,000.

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