Jul 2010 10

Unemployment in Canada Below 8%

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Sunshine and Smiles by Nana Agyei
Sunshine and Smiles
by Nana Agyei

Canadian economy again proved its more than solid strengths, when unemployment rate fell below 8% in June, for the first time in one and half year.

According to Friday's announcement from Statscan, there were 93.000 new jobs created, almost five times more than the biggest optimists expected. Unemployment rate fell to 7,9% instead of expected stalling at 8,1%

It is the second best month in job creation (after April's record with 108.700 new jobs). According to Statscan, all loses caused by the crisis (417.000 jobs) have been erased.

"We've replaced those jobs already. It is quite something how we are rebounding," said Dawn Desjardins, assistant chief economist at Royal Bank. She mentioned low interest rates, a stable banking system and the government's comparative strong fiscal position as the main reasons of flourishing recovery.

Canada can with boast several more achievements. We are the first of G7 to raise interest rate; IMF predicts budget surplus in 2015 and one of the strongest banking systems in the world.

Canadian dollar reacted to the news and strengthened to 0.9674 USD.

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