Instant view: Canada's economy adds 83,100 new jobs in June
Market reaction:
Link: https://www150.statcan.gc.ca/n1/daily-quotidien/250711/dq250711a-eng.htm?HPA=1, opens new tab
COMMENTARY
ADAM BUTTON, CHIEF CURRENCY ANALYST AT FOREXLIVE
"The Canadian jobs report isn't quite as strong as it first appears but it's certainly solid and it will sideline the Bank of Canada for several months at a minimum."
"Given what's happened this year, the Canadian economy is performing better than almost anyone thought it would be."
"It is one of these classic Canadian employment numbers insofar as the details tell a slightly different story than what the headline number tells. But overall, 83,000 jobs, it is just a lot of jobs in the context of slowing population growth."
"Just looking at the data... It suggests that perhaps there is a little bit more resilience in the economy than we had anticipated. Manufacturing sector did add jobs in the month of June, but that comes on the heels of fourth consecutive month of job losses. You are going to see that sort of inherent volatility in an environment where trade relationships are uncertain."
"The solid employment report has pushed our tacking for Q2 GDP growth up slightly, although it remains in a range of -0.5-0.0%. With the unemployment rate still elevated, today's labour market data won't be the swing factor for the upcoming Bank of Canada rate decision. Next week's CPI release will play a much more important role in determining whether central bankers resume monetary easing later this month."
"Canada's labour market showed its resilience in June, with employment jumping by 83K, and the unemployment rate falling by a tick to 6.9%."
"While the unemployment rate is still elevated, the strength in other measures in this report clearly diminishes the odds of a BoC (interest rate) cut in July."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
15 minutes ago
- Reuters
Core Scientific's shareholders balk at terms of CoreWeave merger offer, FT reports
Aug 5 (Reuters) - CoreWeave's (CRWV.O), opens new tab proposed $9 billion acquisition of data centre landlord Core Scientific (CORZ.O), opens new tab is facing potential revolt, as some top shareholders of the target firm argue the deal may leave them short-changed, the Financial Times reported. Some major Core Scientific shareholders plan to vote against the deal unless the terms are revised in the coming weeks, the report said on Tuesday, citing people familiar with the matter. Reuters could not immediately verify the report. CoreWeave and Core Scientific did not immediately respond to Reuters request for a comment outside regular business hours. The shareholder vote for Core Scientific has not yet been scheduled but is expected to take place sometime this autumn, the report said. The all-stock deal, valued at about $9 billion and announced last month, highlights the race among AI infrastructure firms to secure the energy and data center capacity required to meet surging demand. CoreWeave, which provides access to data centers and Nvidia-powered AI chips, initially submitted an unsolicited, non-binding takeover offer to Core Scientific in June 2024. However, the company rejected the offer, citing that its business was significantly undervalued.
Reuters
43 minutes ago
- Reuters
Egypt's non-oil sector shows signs of stability as PMI nears growth threshold
Aug 5 (Reuters) - Egypt's non-oil private sector showed signs of stabilisation in July, with employment rising for the first time in nine months and a softer decline in output and new orders, according to the latest S&P Global Egypt PMI report. The headline PMI rose to 49.5 in July from 48.8 in June, remaining below the 50.0 threshold that separates growth from contraction. However, the index reached its joint-highest level in five months, suggesting only a marginal decline in business conditions. "Businesses ... had the confidence to hire new staff, leading to an increase in employment for the first time in nine months, if only a fractional one," said David Owen, Senior Economist at S&P Global Market Intelligence. Employment rose as firms responded to signs of stabilising demand and rising backlogs of work. Output and new orders continued to fall, albeit at a softer rate than in June, with some firms noting increased activity amid tentative signs of recovering sales. The wholesale and retail sector remained the largest drag on demand and activity. Input prices rose at a quicker pace, driven by higher costs for items such as cement and fuel, yet remained below the long-run trend. Selling charges increased for the third consecutive month, although the rate of inflation was modest. Despite ongoing challenges, optimism about future activity improved slightly from June's record low, with firms expressing hopes for slower inflation and reduced regional conflict. However, overall confidence remained historically subdued.
Reuters
an hour ago
- Reuters
Core Scientific shareholders balk at terms of CoreWeave merger offer, FT reports
Aug 5 (Reuters) - CoreWeave's (CRWV.O), opens new tab $9 billion deal to buy data centre landlord Core Scientific (CORZ.O), opens new tab is facing a potential revolt, with some top shareholders of the target company arguing it could leave them short-changed, the Financial Times reported on Tuesday. Reuters could not immediately verify the report.
