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‘Squishy soft’: Here’s what the economists say about today’s jobs shocker



About 33,500 full-time positions were created during the month and self-employment was up 23,400, while part-time jobs dropped by 43,000. Both private and public payrolls were down in June, by 21,000 and 11,900, respectively.

The Canadian dollar weakened to a session low against the greenback after jobs data came out. Shortly after the report the Canadian dollar was at 93.58 U.S. cents, weaker than Thursday’s close of 93.92 U.S. cents.

“Today’s disappointing results will give the Bank of Canada more reasons to stay on their dovish script when they make their announcement next Wednesday,” said CIBC in a morning note, “with their preference for a neutral stance on rate hikes to be maintained.”

The June report is in stark contrast to what markets had expected for the month.

Economists’ forecasts had ranged widely from 20,000 to 35,000, while the consensus was for jobless rate to remain unchanged at 7%.

Ahead of Friday’s data release, BMO Capital Markets predicted the labour market would have been “padded by a temporary lift from the Ontario election.” Still, Statistics Canada said employed actually fell during the month in Ontario, down by 34,000, along with declines in Newfoundland and Labrador. The biggest job gains were recorded in Alberta, Manitoba, New Brunswick and Prince Edward Island, the agency said.

“The June survey results provide the first indicators of the summer job market, especially students aged 30 to 24, as many students aged 15 to 19 [were] still in school.