Published: Sun, July 08, 2018
Finance | By Claude Patterson

Windsor's unemployment rate slightly below national average in June

Windsor's unemployment rate slightly below national average in June

The unemployment rate in Northeast B.C. last month fell for the first time after four straight months of increases.

Alberta's unemployment rate jumped to 6.5 per cent in June, according to Statistics Canada.

While the overall employment picture is positive, the region's high-tech sector shed 2,700 jobs - the steepest single-month decline since February 2015.

The economy added 31,800 positions in June and the unemployment rate rose to six per cent, from 5.8 per cent in May, Statistics Canada reported.

The latest jobs report, which also contained weaker data points, arrived less than a week before the Bank of Canada's upcoming interest-rate decision next Wednesday. Many experts expect that Stephen Poloz, Governor of the Bank first raised the rate from January. Following the release of those numbers on July 6, CIBC Capital Markets chief economist Avery Shenfeld said in a research note that the data is "good enough" to encourage the central bank to hike.

The lowest rate of unemployment was recorded in the Lower Mainland where only 4.4 percent of the labour force was without work, while the next lowest rate on Vancouver Island was 4.9 percent.

Average hourly wage growth, which is closely watched by the Bank of Canada ahead of its rate decisions, remained firm last month at 3.6 per cent.

Canadian government bond prices were higher across a flatter yield curve, with the 10-year rising 18 Canadian cents to yield 2.126 percent. The Bank of Canada says uncertainty over trade tensions between Canada and the United States is one of the biggest potential threats to the economy. "If the BoC continues with its current approach of assuming that current trade arrangements will be maintained, the threat of auto tariffs and further trade tensions between the US and China are unlikely to play a major role in the July 11th decision", Sebastien Lavoie, chief economist at Laurentian Bank, told Reuters.

Compared with a year earlier, total employment increased by 1.2% 214 after the creation of 90 jobs. The local jobless rate in June 2017 was 7.0 per cent.

"After an impressive performance in 2017, the Canadian labour market definitely took a breather in the first half of 2018", Arseneau wrote in a research note to clients.

More people were employed in construction, natural resources, and manufacturing.

While the central bank's latest Business Outlook Survey was largely taken prior to USA tariffs on steel and aluminum being imposed-a fact that the BoC also highlighted-the resulting uncertainty did not sway the C.D. Howe council's vote for next week's BoC meeting.

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

Separately, Statscan said Canada's trade deficit in May grew to C$2.77 billion ($2.11 billion) from C$1.86 billion in April on a sharp rise in imports of airliners and gasoline while exports edged down.

Trump escalated by saying the USA could soon impose tariffs on more than $500 billion in Chinese imports.

Like this: