Canada’s employment rate inched down to a new record low after adding more jobs than expected in May, and wage growth picked up steam, official data showed on Friday, bolstering the case for an even larger rate increase next month by the central bank.
Canada added a net 39,800 jobs in May, entirely in full-time work, beating expectations for a gain of 30,000.
The jobless rate dropped to 5.1%, beating predictions it would remain at 5.2%.
The average hourly wage of permanent employees rose 4.5%, accelerating from 3.4% in April and in line with gains seen in 2019.
The loonie was trading lower against the U.
The Bank of Canada’s “solemn focus these days is on their inflation target,” said Derek Holt, vice president of Capital Markets Economics at Scotiabank.
While Canadian wage gains are not yet keeping pace with inflation, they are gaining momentum.
That could feed into broader price increases as employers pass those costs on to customers.
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