Canada: Unemployment Rate falls to 12.3% in June vs. 12% expected

Net Change in Employment in Canada rose more than expected.
USD/CAD pair continues to post small daily gains near 1.3600.

Eren Sengezer FXStreet

Net Change in Employment in Canada rose by 953,000 in June and brought the Unemployment Rate down to 12.3% from 13.7% in May, Statistics Canada reported on Friday.

Despite a bigger-than-expected Net Change in Employment, the Unemployment Rate came in worse than analysts' estimate of 12%.

Market reaction

The USD/CAD pair largely ignored this data and was last seen trading near 1.3600, gaining 0.12% on a daily basis.

Additional takeaways

"Approximately 2.5 million Canadians were unemployed in June, a decrease of 167,000 (-6.4%) from May but more than double the February level (1.1 million)."

"In June, as COVID-19-related restrictions eased, the number of people participating in the labour force rose by 786,000 (+4.1%)."

"With the easing of COVID-19 restrictions in May and June, the initial recovery of employment—to within 9.2% of pre-COVID levels—has been sharper than in previous downturns, when recovery to pre-downturn employment has taken from two to five years."

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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