Canada's Unemployment Climbs Amidst U.S. Tariff Pressures
In May, Canada's unemployment rate reached 7%, its highest outside the pandemic era, due to a constrained labor market and U.S. tariffs. Employment grew slightly with 8,800 new jobs, below expectations. Analysts link the rise to trade tensions impacting investments and hiring, as the Bank of Canada expresses concern.
Canada's unemployment rate rose to 7% in May, marking the highest level outside the pandemic-driven numbers in almost nine years, according to statistics released on Friday. The increase is attributed to a constrained labor market amid a rising population and U.S. tariffs impacting Canadian industries.
The data shows a minimal growth in employment, with only 8,800 new positions, falling short of the anticipated figures due to the trade tensions. Analysts had expected a drop in employment numbers due to tariffs imposed by the U.S. on Canadian goods like steel, aluminum, and automobiles, leading to reduced job growth and some layoffs.
The Bank of Canada highlighted concerns regarding the ongoing trade dispute, pointing out that the tariffs and their associated uncertainties are hindering investments and hiring. Unemployment duration has also increased, with individuals spending an average of 21.8 weeks job hunting, further indicating economic pressure.
(With inputs from agencies.)
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