Canadian employment falls sharply as unemployment rises
Canadian employment fell by 68,300 jobs, significantly missing expectations for a 10,000-job increase. The previous period had also recorded a loss of 41,700 jobs.
The unemployment rate rose to 6.5%, matching forecasts but increasing from the previous 6.4%. The figures point to continued weakness in Canada's labor market.
The labor force participation rate declined to 64.8%, below both the 65% forecast and the previous reading. Annual average hourly earnings growth accelerated to 2.3%, matching expectations and rising from 2.0%.
The sharp employment decline could support expectations for Bank of Canada rate cuts, although faster wage growth may warrant caution over inflation risks.
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