Canada Jobless Rate Lowest in Four Decades

Canada’s jobless rate returned to four-decade lows in July on stronger-than-expected employment gains, adding to evidence the nation’s economy continues to power ahead, Bloomberg reported. The unemployment rate declined to 5.8% from 6% in June, matching the lowest level since the 1970s, Statistics Canada reported Friday from Ottawa. The economy added 54,100 jobs, marking a second straight month of exceptionally strong labor market gains. While the breakdown was less rosy in July—all the gains were part-time and concentrated in public sector service jobs—the report is consistent with a robust economy that continues to generate jobs at a steady pace and looks to be running up against capacity. Canada’s economy has added more than 600,000 new jobs over the past two years—most of them full-time—raising concerns the nation’s tightening jobs market is running out of room to grow much further. The Bank of Canada has already raised interest rates four times since last year to cool growth and keep inflation in check, and is expected to hike borrowing costs at least once more this year.