A fabulous, unexpected jobs report from Statistics Canada today.
Bottom line: 93,000 new jobs created, including plenty in the private sector. Unemployment rate goes to 7.9 per cent, the first time it's been under 8 per cent since January of 2009.
Political implications: Obvious good news for the federal government — and many provincial governments — to trumpet. All those jobs lost during the recession have now been recovered. Makes it tougher for opposition parties anywhere to make the case for change if that case was predicated on mismanagement of the economy.
Reaction:
“The details were solid with gains split evenly between full-time and part-time … There’s no arguing with this strong report. The jobs picture clearly shows that the Canadian recovery hasn’t stalled yet, despite signs of slowing momentum in the U.S. and other economies. This strong report solidifies our call for the Bank of Canada to raise rates 25 bps on July 20.” – Benjamin Reitzes, BMO Capital Markets Economics
“Canada’s job machine showed no visible signs of slowing down in June, and as a result we’ve now recouped almost all the jobs that were lost during the recession… The bullish employment report provided a lift to the Canadian dollar this morning, while bonds sank after the data release.” – Krishen Rangasamy, CIBC World Markets
“This report put the icing on the cake for the labour market in the second quarter of 2010, which saw 226,000 jobs created in the three-month period. Since August of 2009, the economy has basically recovered the jobs lost during the worst of the recession, and the level of real GDP stood just 1% below its pre-recession peak in April . . . Conditions in Canada are much better than in many other countries, so the very stimulative level of interest rates is no longer warranted. ” – Dawn Desjardins, RBC Economics
“The 403,000 jobs created since July 2009 have brought Canada’s employment rate back nearly to where it was before the recession.” – Prince Owusu, Conference Board of Canada
“Need A Job? Try Canada, Where Hiring Is Booming And Home Prices Are Rising” – Huffington Post