(MENAFN– ecpulse) Along with cheerful growth data revealed last week today we watch a lower jobless rate for Canada within the month of July yet less people were added to the market while that on the U.S soil the productivity of U.S workers rose more than projected in the second quarter.
In fact Statistics Canada revealed today in Ottawa; the country’s capital, that the country’s unemployment rate plunged to 7.0 percent from actually 7.1 percent and that Employment rose by 200 after a decline of 9,400 in May, while the number of people in the labor force fell by 35,400.
Also the Bank of Canada policy makers cited weaker participation as a sign of slack in the economy, which they said last month will take about two years to eliminate and accordingly the July participation rate fell to 65.9 percent, the lowest since October 2001, from 66.1 percent the month before.
Keeping in mind that Canada’s economic growth surged in May at the fastest rate on four months, boosted by increased car production.
Gross Domestic Product (GDP) rose 0.4%, after a 0.1% expansion on April, according to data by Statistics Canada. This matched estimates by Bloomberg analysts.
The fifth straight monthly gain in domestic output adds to signs the economy is making progress on what Bank of Canada Governor Stephen Poloz said will be a two-year recovery toward full output.
As for the U.S, a report showed today that the productivity of U.S. workers rose more than projected in the second quarter, rebounding from the biggest drop in more than three decades and helping to restrain labor costs.
In fact the second quarter preliminary reading of the nonfarm productivity came in higher than the market forecast reading of 1.5 percent at 2.5 percent from actually a prior revised reading of -4.5 percent from -3.2 percent.
Being aware that this index tracks the total number of added or shed jobs in the economy; it covers almost 80% of workers who produce the total GDP in the United States and therefore it only confirms further growth and enhanced labor conditions.
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