June employment gains exceeded expectations, with wage growth accelerating and unemployment dipping to 6.5%.
Canada’s economy added 18.2K jobs in June, surpassing the 10K estimate, following a blockbuster 87.8K gain in May. Full-time employment rose by just 0.6K, while part-time roles increased by 17.5K, reversing a 66.2K decline in the prior month.
The unemployment rate fell to 6.5%, down 0.4 percentage points over two months, and average hourly earnings accelerated to 3.7% year-over-year from 3.2%. Private sector hiring drove growth, offsetting a 31K drop in public sector payrolls, while manufacturing shed 17K jobs.
USD/CAD dipped 22 pips to 1.4146 after the report, as markets priced a 50% chance of a Bank of Canada rate hike in December.