Canada adds 27,700 jobs in May, unemployment rate hits record low 5.4%

OTTAWA (Reuters) – The Canadian economy added a higher-than-expected 27,700 net new jobs in May, all of them accounted for by an increase in self-employed people, while the unemployment rate dipped to a record low of 5.4%, Statistics Canada data indicated on Friday.

Analysts in a Reuters poll had predicted a gain of 8,000 positions from April and a jobless rate of 5.7%. The 5.4% rate is the lowest since comparable data became available in 1976.

While on the surface the May data looked strong, Statscan said 33,800 public and private sector employees lost their jobs, while the number of self-employed rose by 61,500.

Employment in the services sector rose by a net 22,800 jobs on gains in healthcare and professional services. The goods-producing sector added a more modest 4,900 positions, thanks to strength in manufacturing.

The Bank of Canada held interest rates steady as expected on May 31, citing evidence that recent economic weakness was temporary and signaling it would remain on the sidelines as it kept a close eye on major data.

Reuters

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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with TradeTheNews.com, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya