“June job creation was above expectations but the details of the report were a lot less impressive,” point out National Bank Financial analysts.
Key quotes
“Most of the jobs added were part-time and the private sector recorded a second consecutive monthly decline. Hourly earnings slowed to a meager 0.1% in June (m/m), following a surge of 0.5% in the prior month. Despite the increase in headcounts in June, total hours worked declined 0.2% during the month (they show no growth this year). After an impressive performance in 2017, the Canadian labour market definitely took a breather in the first half of 2018.”
“Total employment registered its worst start of the year in the current expansion due to the 48K drop in private-sector jobs. Major cities were not immune to the slump: Vancouver is down 45K jobs this year and Toronto has seen a pullback of 24K. Though the latest Bank of Canada Business Outlook Survey indicated that firms were willing to hire, it remains to be seen if a rebound in the private sector will occur given growing trade uncertainties.”
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