230,000 new jobs last month

TORONTO - Canada added 230,700 jobs in June, with all the gains in part-time work, and the unemployment rate fell to 7.8%, Statistics Canada said on Friday.

Analysts surveyed by Reuters had expected a gain of 195,000 job and the unemployment rate to fall to 7.7%.

COMMENTARY

JIMMY JEAN, CHIEF ECONOMIST AT DESJARDINS GROUP

“I think it’s generally a good report. It is heavily driven by part-time employment, of course, but it’s also consistent with what we are seeing by industry. One of the best performances was seen in accommodation and food ... so that’s the signal that reopening in high-contact sectors is really leading a pick-up.”

“A very strong report reinforces the idea that the Bank of Canada should be announcing another round of tapering next week.”

ANDREW KELVIN, CHIEF CANADA STRATEGIST, TD SECURITIES:

“I think a robust increase in jobs should have been the bare minimum we would have expected, given the reopening of the economy.

Obviously, it’s a little bit better than the market consensus had been, and more jobs is always better than less jobs.”

“But I don’t know that it gives us much of a signal for the way we can expect the economy to unfold in August, September, October - because I think the big question is the duration and intensity of the reopening surge, and I don’t think we’re any closer to knowing the answer to that today than we were this time yesterday.”

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS, SCOTIABANK:

“The headline was good, but it was all part time, so that’s a bit of a dent against the quality. I don’t think that’s too surprising given the reopening effects and relaxation of the restrictions is still at a very early stage, so maybe the first thing you turn to is part time workers.”

“I think it’s very feasible that we regain, if not all, than most of the jobs lost during the pandemic by the end of this year. A print like this was achieved with Ontario still lagging behind the rest of the country on relaxing restrictions, so I’d expect the next report to build on this optimism.”