Canada's unemployment rate rises to 7%

 

 

Canada's unemployment rate has risen to 7%, the highest level in nine years, excluding the COVID-19 pandemic. The unemployment rate was 6.9% in April.

Statistics Canada said there has been no significant job growth since January. The economy added just 8,800 jobs in May, unchanged from April, Statistics Canada said. The number of people employed in the private sector increased for the first time this year in May. However, with the federal election period over, public sector employment also fell. The public administration sector lost 32,200 jobs. The manufacturing sector lost another 12,200 jobs in May, compared to 31,000 in April. Douglas Porter, chief economist at BMO, said the continued rise in the unemployment rate is a big warning sign. Given the current situation, the Bank of Canada is likely to continue cutting interest rates to stimulate economic activity. The Canadian central bank will issue a decision on interest rates on July 30.