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While Canadian employment was virtually unchanged in June, following little change in May, the unemployment rate increased 0.2 percent to 6.4 percent and has risen 1.3 percent since April 2023. Declines were led by people working in transportation and warehousing. Economists had expected a gain, and unemployment was the highest reading for the unemployment rate since January 2022.

In the United States, the unemployment rate ticked up to 4.1 percent. Adding to emerging signs of weakness in the U.S., average hourly earnings marked their smallest gain since 2021, and the jobs count for both April and May were revised lower. The %NonfarmPayroll report also showed that the U.S. added 206,000 jobs in June, slightly beating expectations.

The Canadian employment data shows the second month of job losses and gives the Bank of Canada more reason to continue its rate-cutting cycle. In the United States, the print provides the central bank with further evidence that the %LaborMarket is coming into balance.