Unemployment poised to tick up in Canada in June
The post Unemployment poised to tick up in Canada in June appeared on BitcoinEthereumNews.com.
The Unemployment Rate in Canada is expected to rise further in June. Further cooling in the labour market could favour additional rate cuts. The Canadian Dollar remains sidelined around 1.3600 against the US Dollar. On Friday, Statistics Canada will release the results of the Canadian Labour Force Survey. Market investors predict that the report will come in on the soft side, which might encourage the Bank of Canada (BoC) to resume its easing cycle. The BoC kept its policy rate at 2.75% at its June meeting, following the same move in April and the 25-basis-point cut in March. Back to the previous meeting, the central bank justified its decision to hold rates steady due to the elevated uncertainty surrounding the White House’s erratic trade policy. The central bank also suggested that another rate cut could be necessary in July if tariffs cause the economy to weaken. Governor Tiff Macklem reiterated that ongoing uncertainty about the effects of tariffs, the outcomes of trade negotiations, and any new trade measures would constrain the bank’s ability to look far ahead. He observed that, although first-quarter growth had exceeded expectations, business investment and domestic spending remained largely subdued, and he warned that second-quarter growth would be substantially weaker, a view shared by economists who predicted that this subdued trend was likely to persist. According to Statistics Canada, the Employment Change increased by 8.8K jobs in May, building on April’s 7.4K gain, while the Unemployment Rate rose for the third consecutive month to 7.0%. At its most recent meeting, the central bank noted that the labour market had weakened, with job losses concentrated in trade-intensive sectors. The BoC added that employment had so far held up in sectors less exposed to trade but warned that businesses were generally indicating plans to scale back hiring. What…
Filed under: News - @ July 11, 2025 7:26 am