Canada Bonds Plunge After 87,800 Job Gain Cuts Unemployment to 6.6%
Updated
Updated · Bloomberg · Jun 6
Canada Bonds Plunge After 87,800 Job Gain Cuts Unemployment to 6.6%
3 articles · Updated · Bloomberg · Jun 6
Summary
87,800 new jobs in May marked Canada’s biggest monthly employment gain since 2024, sharply beating expectations after a weak start to the year.
The surprise strength pushed the unemployment rate down to 6.6% and drove a selloff in Canadian bonds as investors reassessed the labor market outlook.
Full-time positions led the increase, and hiring was spread across industries, suggesting the rebound was broad rather than concentrated in one sector.
The report points to a firmer economy than recent labor data had indicated, potentially complicating expectations for easier monetary policy.