06:57 AM EDT, 08/09/2024 (MT Newswires) -- With so much focus on the rising United States unemployment rate,

there may be some extra eyes on Friday's Canadian Labour Force Survey (LFS), said Bank of Montreal.

The jobless rate is expected to tick up, again, to 6.5% in July, noted the bank. That's almost two percentage points above the rate two years ago (4.8%), which was the lowest in over five decades.

The job market has softened alongside a well-publicized inflow of people into Canada in recent years, stated BMO. So, the labor force has grown -- by 2.7% y/y in June -- but many of these new entrants can't find jobs, as reflected in a rising unemployment rate.

While the Bank of Canada (BoC) had been looking for some easing in the job market (and in wage pressures), the recent softness has it concerned about the two-sided risks to its mandate, added BMO. Hopefully, the recent -- and ongoing -- rate cuts will prevent further material cooling, according to the bank.