Canada adds 87,800 jobs in May; jobless rate falls to 6.6%

Canada's economy added 87,800 jobs in May, significantly exceeding analysts' expectations of 10,000 additions and a forecast unemployment rate of 6.9%. The unemployment rate fell to 6.6%, marking the first significant job gain this year and reversing nearly 80% of job losses since January. Full-time employment saw a net addition of 154,000 jobs, while part-time employment fell by 66,200. Key sectors contributing to job growth included construction, information, culture and recreation, transportation and warehousing, and accommodation and food services. The wholesale and retail trade sector saw a decline of 35,000 positions. Average hourly wages for permanent employees grew 3.2% in May, a decrease from 4.8% in April. The youth unemployment rate declined to 13.4%. The participation rate was 65%, below the forecast 65.1%. The Bank of Canada is holding its policy rate at 2.25% and is expected to remain on hold, with a neutral-to-hawkish bias due to energy-driven inflation risks. The USDCAD was trading near 1.3890 ahead of the report.