Ottawa - Statistics Canada revealed on Friday that the Canadian economy added 83,000 new jobs in June, a significant increase that far exceeded economists' expectations who predicted a labor market downturn and rising unemployment rates.

The data showed that the unemployment rate dropped to 6.9% from 7.0% in May, marking the first decrease in months amid signs of slowing economic growth.

Analysts stated that most of the new jobs were concentrated in the services sectors, particularly education, healthcare, and public administration, while the manufacturing sector saw only limited growth.

Commenting on the numbers, Robert Kavcic, Senior Economist at TD Bank, said, “This large increase was a clear surprise, considering the relative weakness in recent growth data,” adding that the market may remain fragile during the second half of the year amid ongoing pressures from high interest rates.

This improvement comes despite widespread expectations that the Bank of Canada's monetary tightening will lead to a greater slowdown in employment. The central bank is expected to announce its decision on interest rates next week, with anticipation over whether the recent improvement in the labor market will influence the course of monetary policy.