Canada’s labour market added a net 90,400 jobs in April and the unemployment rate remained unchanged at 6.1 per cent, blowing past analyst expectations. But underlying weakness means a June rate cut is still on the table for the Bank of Canada.had forecast an increase of 18,000 jobs in April, and for the unemployment rate to rise to 6.2 per cent.
The employment gains were driven by an increase in part-time employment, Statistics Canada said, with 50,000 part-time jobs added in April. Jobs were added in the professional, scientific and technical services, accommodation and food services, health care and social assistance and natural resources, while employment fell in the utilities sector.
Desjardins managing director and head of macro strategy Royce Mendes said the details of the April report "suggest that the labour market is actually exhibiting some evidence of slack." "Taken in combination with other releases showing a mild acceleration in growth, today’s data could limit the extent to which the central bank cuts borrowing costs over the next year, and could contribute to a more optimistic rhetorical stance from policymakers in the weeks and months ahead," Schamotta said.
"The central bank has been looking for evidence that inflation will continue moving towards the 2 per cent target. With the labour market showing renewed strength, there is potential for consumer spending to rise in the coming months, forcing inflation higher. This will be a concern for the BoC, which has seen this narrative play out in the U.S. over 2024.
MONTREAL — Travel company Transat A.T. Inc. says it expects to fall short of its financial guidance for the year. The Montreal-based company says it will likely not achieve its adjusted earnings before interest, taxes, depreciation and amortization margin forecast for its 2024 financial year.
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