The Canadian labour market is showing some signs of softening as the unemployment rate rises and wage growth slows, but with another solid job gain last month, forecasters are still expecting a rate hike next week.
Statistics Canada reported Friday the economy added 60,000 jobs in June, driven by gains in full-time work.
But as more Canadians searched for work and the population continued to grow, the unemployment rate climbed higher to 5.4 per cent, the highest it’s been in a year.
“The reason the unemployment rate can rise alongside historically strong employment growth is that population growth continues to set new records—including an 84k monthly increase in June,” wrote RBC assistant chief economist Nathan Janzen in a note to clients….