A chart-by-chart breakdown of the week’s business and economic news.
Jobs shocker
The Canadian economy added 58,900 jobs in May, well above the consensus estimate of 10,000 positions. “One really couldn’t ask for a much better jobs report for Canada, shining a significantly more favourable light on Canada’s economy than last week’s downbeat GDP results,” BMO chief economist Douglas Porter said in a note.
Back on track
The U.S. jobs report delivered some bright news after a recent spate of lacklustre data. Nonfarm payrolls increased by 280,000 in May, the largest monthly gain of the year. “This evident strength in the labour market probably isn't enough to persuade the Fed to hike rates in July, but it leaves a September liftoff looking more likely than ever,” Paul Ashworth, chief U.S. economist at Capital Economics, said in a note.
‘Concerning’ trade numbers
Canada's trade deficit for April was the second-biggest on record at $2.97-billion. The only bigger one? The March deficit, which was revised up to $3.85-billion. “Yes, Canada’s trade position improved in April, but the size of the deficit is concerning,” BMO senior economist Benjamin Reitzes said in a note.
Blame game
The oil shock’s impact on the U.S. labour market may be waning. Just over 1,000 planned layoffs were blamed on oil prices in May, down from 20,675 a month earlier, according to a report from global outplacement consultancy Challenger, Gray & Christmas Inc. For the year, 69,304 job cuts have been blamed on oil prices.
Toronto’s housing market: still hot
The average price for all home types in Toronto rose to $649,599 in May, according to the latest figures from the Toronto Real Estate Board. That measure has risen by more than $200,000 over the past five years.