Canada's Unemployment Rate Peaks, Despite Stable Employment Growth

Canada's unemployment rate experienced a significant uptick in May, reaching its highest level in nearly nine years, as official data revealed 1.6 million jobless citizens. Statistics Canada indicated the unemployment rate stood at 7%, rising from April's 6.9% figure, marking a sustained upward trend.

Economists had projected this rise, attributing it to U.S. tariffs. However, amid flat employment growth, the labor market remains stable, without significant layoffs. Encouragingly, the economy added 8,800 jobs overall, although this growth was marginal compared to the burgeoning population.

Adding to the complexity, the Canadian dollar held steady, gaining slightly against the U.S. dollar, while bond yields edged higher. Analysts continue to assess the tariff impact, especially in the automotive and metals sectors, as full-time positions grew significantly, countering part-time job losses.

(With inputs from agencies.)