Jobs Report Beat Could Mean July Rate Hike

The New Brunswick economy lost 1,100 jobs in June pushing the unemployment rate up to 7.5 per cent according to Statistics Canada

The New Brunswick economy lost 1,100 jobs in June pushing the unemployment rate up to 7.5 per cent according to Statistics Canada

In an estimated labour force of 42,700, there were 39,700 employed and 3,000 unemployed, according to the survey released July 6. "Over the same period, total hours worked grew by 1.4 per per cent", it said.

OTTAWA-Canada added more jobs than expected in June and wages continued to advance at a strong pace, bolstering expectations that the Bank of Canada will raise the benchmark interest rate next week. The jobless rate in Calgary remained steady at 7.7 per cent.

The federal agency reported on Friday that the rate was up from 6.2 per cent the previous month.

The rate of employment in the region increased by over two percent, from 68.5 to 70.6 percent, making it the economic region with the highest rate of employment in B.C. Despite that, Northeast B.C.'s unemployment rate was the second-highest of any region in B.C. for the second straight month.

Across Canada, 31,800 jobs were added to the economy.

Canadian government bond prices were higher across a flatter yield curve, with the 10-year rising 18 Canadian cents to yield 2.126 percent. "Overall employment was little changed in the first six months of 2018, following notable growth in 2017". The labour force in Northeast B.C. also increased last month, from 41,800 to 42,700.

Services sectors, meanwhile, lost 14,700 jobs mostly because of big decreases in accommodation and food services positions as well as wholesale and trade.

DePratto stressed he didn't see anything in the jobs report to deter Poloz from hiking the rate next week.

In a separate report Friday, Statistics Canada said the country's merchandise trade deficit with the world widened in May to almost $2.8 billion.

Higher imports in May of aircraft, other transportation equipment and energy products fuelled most of the increase.

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