Jobs, the Economy and Interest Rates
There were 60,000 new jobs created in Canada in June. This is three times higher than was forecast! Unemployment was also up slightly, to 5.4%, this month over last month. This shows that there were more people searching for work. Wage growth is up 4.2% year over year; however a month ago wage growth was up 5.1%. On an adjusted basis it could be argued that wage growth is going down.
Given all this most economists think that there will be a 0.25% rise in the Bank of Canada rate at the July 12 meeting. If not in July, then most expect that it will be at the following meeting in September.
Have a wonderful summer everyone!