Jobs
Labor Market Weakness Keeps Door Open For Canada Rate Cuts
- Economists estimated a 25,000 job gain, 6.3% unemployment
- Wages rise 5.6% but Macklem says compensation lags job trend
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The Canadian labor market unexpectedly lost jobs for the second time in four months, keeping the central bank on track to further cut rates this year.
The country shed 1,400 jobs in June, while the unemployment rate rose 0.2 percentage points to 6.4%, Statistics Canada reported Friday in Ottawa. Economists had expected the job market to look stronger, with a gain of 25,000 positions and a jobless rate of 6.3%, according to the median estimates in a Bloomberg survey.