June's Labour Force Survey showed strong employment growth of 28,000 new jobs, the third consecutive monthly increase. The national unemployment rate remained unchanged at 7.4 per cent. Unfortunately the strong employment growth did not extend to BC where payrolls, lead by a sudden drop in full-time jobs, fell by 9,400. However, a significant decrease in the BC labour force meant that even with jobs being lost last month, the unemployment rate fell to 7.3 per cent.
South of the border, today's US employment report can be described as nothing less than disheartening. Job growth fell way below the expected 105,000 at just 18,000 new jobs while May's already anemic report was revised lower. The unemployment rate ticked higher to 9.2 per cent.
Weaker than expected job growth in the US will likely rattle bond markets as investors re-evaluate growth expectations in the second half of the year. This means that the recent surge in 5-year bond yields will either be halted or partially reversed and therefore that fixed mortgage rates should hold steady over the next month. Also, added uncertainty in the United States from a seemingly weakening economy will almost certainly keep the Bank of Canada on the sidelines at their July 19 meeting.
BCREA represents 11 member real estate boards and their approximately 18,000 REALTORS® on all provincial issues, providing an extensive communications network, standard forms, economic research and analysis, government relations, applied practice courses and continuing professional education (cpe).
Copyright British Columbia Real Estate Association. Reprinted with permission.