Unemployment Rate Should Have Decine More in Canda in June - Forex News by FX Leaders
Employment is recuperating well already

Unemployment Rate Should Have Decine More in Canda in June

Posted Friday, July 10, 2020 by
Skerdian Meta • 1 min read

The unemployment claims started increasing in Canada during March, as the lock-downs began, then they surged higher in April and May. The unemployment rate also surged by more than 1 million in March and by more than 2 million in April.

Although, the increase wasn’t as large as in other countries. But, today’s report which is for June showed a reversal last month, with jobs increasing again while the unemployment rate declined. Although, the decline in the unemployment rate should have been bigger, but the increase in the participation rate stopped the unemployment rate fall further below 10%.

June Canadian Employment Report

  • June Canada employment +952.9K vs +700K expected
  • May Canada employment was +289.6K
  • Canada unemployment rate 12.3% vs 12.1% expected
  • Prior unemployment 13.7%
  • Full time employment +488.1K vs +219.4K prior
  • Part time employment +464.8K vs +70.3K prior
  • Employment 1.8m below Feb
  • Hourly wage rate permanent employees +6.8% vs +8.9% expected
  • Participation rate 63.8% vs 61.4% prior
  • Statistics Canada estimates 3.1m workers affected by shutdown from peak of 5.5m
  • If those who wanted to work but did not look for a job were included as unemployed in June, it would result in an adjusted unemployment rate of 16.3%, a decline of 3.3 percentage points compared with the adjusted rate in May
The participation rate was around 65.5% before the pandemic so you could probably add one-and-a-half points to the unemployment rate. But everything is moving in the right direction here.
The worry is how many jobs are permanent and StatCan offers some insight. They say that about one-third of the unemployed were on temporary layoff while two-thirds were searching for more work. That’s a troubling number because it would still put unemployment above 8%.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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