Canada’s job market posted gains of 10,900 more jobs reducing the jobless rate to 6.3%, the best rate in almost nine years. Canada’s strong economy caused the Bank of Canada to raise interest rates last month for the first time in seven years and it is expected that they will raise them again by the end of 2017, possibly October.
Canada’s economy is now the strongest of the G7 with growth of 3.7% in the first quarter of the year and a 4% gain is expected in the second quarter.
However, growth in the second half of this year is expected to be only 2.25% because of the higher value of the Canadian dollar and a slowdown in real estate sales in the GTA. Exports fell 4.3% in June due to lower exports of gold and energy products.
July’s job strength was in retail and wholesale trade and as well as information, culture and recreation which makes sense for the summer. Manufacturing gained as well which is good news.
Read Dr. Sherry Coopers full report here.