Employment gains, job hunter influx clears way for rate hike

Employment gains, job hunter influx clears way for rate hike

Stats Canada says the unemployment rate rose to 5.5 per cent last month, up from 5.3 per cent in May.

In an estimated labour force of 42,700, there were 39,700 employed and 3,000 unemployed, according to the survey released July 6.

35,000 jobs were added in Ontario in June, however the jobless rate rose to 5.9 per cent due to an increased number of people looking for work.

A recent study of employment of the population of Canada revealed that the unemployment rate in June was the first to break a six-percentage barrier, that hasn't happened since October of past year, when the figure was 6.2%. It was 14.5 per cent in May, but 15.5 per cent in June.

Jobs in agriculture dropped 10.8 per cent to 21,400, while the province saw small declines in manufacturing (0.4%) and construction (0.5%).

The region's unemployment rate has increased for a third straight month.

Chances of a Bank of Canada interest rate increase at the July 11 announcement climbed to more than 90 percent from 88 percent before the data, the overnight index swaps market indicated.

The predictions that Poloz will hike the interest rate, a move that will likely prompt Canada's big banks to raise their prime rates, come even though the economy is facing significant uncertainty.

The Canadian economy added 31,800 jobs in June, more than the 24,000 gain that analysts had predicted.

Separately, Statscan said Canada's trade deficit in May grew to $2.77 billion from $1.86 billion in April. The worldwide trade deficit was about $1.9 billion in April and $3.9 billion in March.

The report showed that Canada's trade surplus with the USA narrowed to $3.3 billion in May, from $3.7 billion April, as more imports headed north across the border and south-bound exports decreased.

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