Cracks appear in Canada's jobs market as unemployment rate rises for first time in almost a year

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ICYMI - Canada loses 17,000 jobs as unemployment rate rises to 5.2%

Jobs losses could indicate to the central bank that its aggressive pace of rate hikes are having their intended effect.Bank of Canada hiked its key interest rate

Youth jobs led the losses in May as employment for those aged 15 to 24 fell by 77,000. The statistics agency said this could point to a slow start to students’ summer jobs season. The youth unemployment rate climbed to 10.7 per cent, its highest since October 2022. Canadian Imperial Bank of Commerce economist Andrew Grantham said it might be too soon for this data to tell the central bank that the economy is meaningfully slowing down.

 

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