-OECD
The Canadian economy lost fewer jobs last month than expected, while the nation's unemployment rate held steady. A total of 6,400 positions were lost in June, as gains in full-time employment were offset by declines in part-time jobs. Economists, however, had predicted a loss of 10,000 jobs in the reported month and the jobless rate to climb to 6.9%. The number of full-time jobs rose by 64,800, whereas there were 71,200 part-time jobs lost in June.
The jobs report came amid concerns over the health of the Canadian economy and speculation the country slipped into recession in the first half of the year. It is the last major economic data release before the Bank of Canada makes its rate announcement and releases its monetary policy report next week. Also the precipitous decline in oil prices have been subduing the economy for longer than estimated, adding to signs that employment growth will slowdown further. Thus, market participants began to price in a 25 basis points cut by the central bank, following a surprise slash to 075% in January. The OECD predicts Canada's unemployment to decline to 6.5% by the end of 2016. Meanwhile, the International Monetary Fund expects Canada's economy to grow just 1.5% in 2015 against its forecast in April of 2.2%.
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