Last month Canada showed a serious job rate decline with employment falling down by 9,400 nationally and by 33,900 in Ontario.
As a result, the official unemployment rate went up by 0.1% to 7.1% reaching the highest level in 6 months.
Such weak results, reported this Friday by Statistics Canada, crashed the previous forecasts of a significant employment growth last month. This morning markets reacted to this news by cutting the loonie’s value by almost half a cent to 93.46 US cents.
Stricter mortgage refinancing rules forced consumers deeper into high-interest debts.
The recent report by RBC shows that outstanding mortgage balances have been moderating for the second month in a row.
“A weak slowing of the mortgage debt growth helped to balance the increasing demand for consumer credit in May. As a result, the total household credit growth stayed unchanged,” - the report says. “Outstanding mortgage balances was 1.23 trillion in May - it’s 5% higher than a year ago. Meanwhile April showed 5.1% increase.”
However, the consumer credit went up to the highest level in 12 months.