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fxJul 3, 2026, 11:30 AM

Wells Fargo: Canada Labor Stability Supports BoC Pause

Wells Fargo Economics notes Canada's labor market is soft but stabilizing, with employment growth under 1% year over year and gains concentrated in full-time positions, favoring a Bank of Canada pause.

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Wells Fargo Economics has assessed the Canadian labor market as soft but showing signs of stabilization after a strong rebound in May. Employment growth remains below 1% year over year, with gains primarily concentrated in full-time positions.

The assessment suggests that the labor market conditions are unlikely to force the Bank of Canada into further tightening, supporting a pause in rate adjustments. This outlook comes amid a broader view of a balanced but cautious economic environment in Canada.

Source: FXStreet Forex News