Jobs boom in CanadaSubmitted by McClarinJ on Sat, 07/10/2010 - 09:32
Canada Job Creation Is Five Times Economist Forecasts
July 09, 2010, 11:53 AM EDT
By Greg Quinn
July 9 (Bloomberg) -- Canada’s job creation was almost five times more than economists expected in June, restoring most of the country’s job losses since 2008 and bolstering the case for the central bank to raise interest rates for a second month.
Employment rose by 93,200 in June, following gains of 24,700 in May and April’s record 108,700, Statistics Canada said today in Ottawa. The jobless rate fell to 7.9 percent, the lowest since January 2009, from 8.1 percent. Economists surveyed by Bloomberg predicted 20,000 new jobs and an unemployment rate of 8.1 percent, according to the median of 23 estimates.
The job market has been one of the strongest parts of a Canadian recovery the International Monetary Fund says will lead advanced economies this year. The Bank of Canada raised its key lending rate from a record low 0.25 percent June 1 after the economy grew at a 6.1 percent annualized pace in the first quarter. The bank said future moves depend on the balance of domestic growth and an uneven global recovery.
Canada is another leftist nation that happens to be pursuing a more restrained, less inflationary economic approach than the US. There is a certain amount of precautionary investment by nervous US investors into assets denominated in both Canadian and Australian dollars. Australia happens to also be experiencing a job boom. Our loss = their gain.