The unemployment rate rose to its highest in more than two years in June, as hiring stalled and the labour force grew by about 40,000 people, Statistics Canada reported. The employment rate, which measures the percentage of the working-age population that has a job, fell to 61.1 per cent; excluding the pandemic, the lowest since early 2002. Average hourly wages were 5.4 per cent higher than a year earlier, compared with 5.1 per cent last month. (The Logic)

Talking point: The latest clue in the mystery over what the Bank of Canada should do at its next rate decision suggests governor Tiff Macklem will cut. The last inflation reading was a little hot, arguing the opposite. However, Macklem followed with a speech about how the central bank thinks about the labour market and why he senses trouble below the surface. The headline numbers are decent by historical standards. But youth unemployment jumped almost a full percentage point in June to 13.5 per cent; excluding the pandemic, that’s the highest since September 2014. It’s a telltale sign that the economy is weak, and suggests the central bank can cut rates without stoking inflation.