Posted on 07/09/2010 10:52:58 AM PDT by NormsRevenge
OTTAWA (Reuters) – Canada's economy created six times more jobs than forecast in June, a near-record gain that pressures the central bank to raise interest rates again this month even as cracks in the U.S. recovery threaten to cool the country's scorching growth.
The staggering employment gain contradicts a recent string of weaker data, including another report on Friday showing housing starts fell in June.
Statistics Canada said on Friday that employment surged by 93,200 in June, flying past market expectations for 15,000 jobs, led by hiring in the retail and wholesale trade sectors, while factories laid off workers.
The gains fell short of the record 108,700 reported in April, but it was the third straight month that employment data exceeded forecasts.
The labor market has now nearly recovered the 417,000 jobs lost during the recession, Statscan said.
Still, the unemployment rate is well above pre-recession levels at 7.9 percent, though down from 8.1 percent in May.
Even taking into account signs of slowing domestic growth, the labor market strength reflects an expanding economy where emergency low interest rates no longer make sense, analysts said. The report increased expectations of a second consecutive central bank rate hike on July 20.
(Excerpt) Read more at news.yahoo.com ...
From what I read in the paper today almost all of the gain is private sector jobs so it does seem like good news.
Nope. But I bet would tar up quite a few pelicans.
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