Labour market adds 60K jobs as Bank of Canada eyes another hike

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Average wage growth decelerated to 4.2% in June, from 5.1% in May; unemployment rate went up to 5.4% From m_zadikian

Friday's labour market report is the last major datapoint before the Bank of Canada's rate decision next week.

"The surge in employment in June suggests that another rate hike at the Bank of Canada's meeting next week is nailed on," Olivia Cross, assistant economist at Capital Economics, said in a note on Friday. "The rapidly growing labour force, which was also helped along by a rise in participation, will further ease some of the labour shortages reported by employers," Royce Mendes, managing director and head of macro strategy at Desjardins, said in a note to clients.

"This pace of hiring is hardly what the Bank of Canada was expecting earlier in the year when it paused its rate-hiking cycle in anticipation of a rebalancing in the labour market," he said.

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