TORONTO (Reuters) – Canada’s economy shed 40,800 jobs in July and the jobless rate held steady at the multi-year high level 6.9%, Statistics Canada data showed on Friday.
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COMMENTARY
ANDREW KELVIN, HEAD OF CANADIAN AND GLOBAL RATES STRATEGY AT TD SECURITIES
“The June number was positive in a way that really defied expectations… what we have here is a bit of a correction in the data. Our economy is still somewhat dour. We don’t expect much growth in the second or third quarters.”
“It (the July job numbers) was a one month correction from the overly optimistic data.”
DOUG PORTER, CHIEF ECONOMIST, BMO CAPITAL MARKETS
“It’s on the softer side, but you got to take it in the context of that very big (jobs) increase of the previous month. The impact of tariffs on jobs I would actually look to manufacturing first and foremost, as being the real test of whether they are showing up or not. It just happens that manufacturing was surprisingly up a little bit. I mean, over the past year, we’ve seen job losses, but it’s not, it’s to the extent that I think one would have guessed.”
ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS
“There’s still more than a month to go until the Bank of Canada’s next interest rate decision, and therefore a lot more data to be released between now and then, including another employment report, two inflation releases and quarterly GDP. However, today’s weaker than expected employment figure is nevertheless supportive for our call of a 25 bp (basis point) interest rate reduction at that September meeting.”
(Reporting by Fergal Smith, Nivedita Balu and Divya Rajagopa; Editing by Caroline Stauffer)
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