The unemployment rate in Canada increased to 6.9 % in April, reaching its highest level since November, as American definitions began to influence the economy that depends on export in the country, according to new data from Canada statistics.
The number of unemployed individuals increased to approximately 1.6 million, as the labor market showed signs of stress under pressure from the duties of the United States on Canadian steel, aluminum, cars and other products. The manufacturing sector alone threw 31,000 jobs, while employment also decreased in the retail and wholesale trade.
While the total employment remained relatively stable, the economy added 7400 jobs in April, compared to the loss of 32,600 jobs in March. Reuters analysts expected an increase of 2,500 meters and a 6.8 % unemployment rate.
“People who were unemployed continued to face more difficulties to find work in April more than a previous year,” said Statskin. Among the unemployed in March, 61 % remained unemployed in April, which is more than four degrees Celsius higher than the same period last year.
Employment rate-Population of Working Age with jobs-to 60.8 %, which is the lowest level in six months. Although population growth has slowed since February, creating job opportunities has not been accompanied.
The public sector added 23,000 jobs (0.5 %) in April, mainly due to the employment of temporary federal elections, after three months of little change.
The average wage growth per hour for permanent employees remained 3.5 %, a major indicator that monitors the pressure of inflation.
Amid economic uncertainty, market pricing is now more than 55 % to reduce the interest rate from 25 points in June, according to currency exchange data. The Canadian dollar rose 0.1 % to 1.3909 per US dollars (or 71.90 US cents), while the return on government bonds for two years decreased for 3.3 basis points to 2.586 % after the report.
Economists have warned that the labor market in Canada was already cooling before the commercial conflict escalated. “Today’s report supports the issue of Canada Bank’s reduction in June,” said Ali Jafiri, senior economists at Cibc Capital Markets.
