Canada's exchange traded fund (
) has been a fairly solid one year-to-date, gaining about 4.5% in
that time and 13.5% in the last three months. What's got our
neighbors to the north feeling so plucky?
Employment is Rising.
Canada had the biggest jump in employment on record last month, led
by service providers, increasing pressure on the central bank to
raise interest rates at its next decision on June 1.
Private-sector employment in Canada increased by108,700 in
April, the highest increase since records first started to be kept
in 1976, and joblessness fell to 8.1% from 8.2% in March,
writes Greg Quinn for BusinessWeek
. The positive economic news may prompt the Bank of Canada to raise
key interest rates as early as next month. Public-sector work
dropped by 1,800 in April, Part-time work rose by 64,800 and
full-time employment by 43,800. [
Commodity ETF Strategies for the Jim Rogers
Retail and wholesale companies led the increase in the work
force, followed by business, building and other support services,
and construction companies. The largest decline was in
manufacturing. Average hourly wage growth slowed to 2% in April
year-over-year as compared to 2.2% in March.
They're on Track for Faster Growth.
The International Monetary Fund (
) has stated that Canada will be the fastest-growing member among
the Group of Seven countries this year and the next, with a
projected 3.1% expansion in 2010 and 3.2% in 2011. [
Canadian Dollar ETF: Why It's Strong.
Craig Wright, senior vice-president and chief economist for RBC,
believes Canadian province Alberta, a producer of natural gas, will
be the "top of the pack," with a 4.2% economic expansion,
reports Mario Toneguzzi for Calgary Herald
. However, the province will lag behind the overall economy for
2010. Adam Legge, vice-president and chief economist with Calgary
Economic Development, says that a higher employment rate and oil
prices that will hover around the "new normal" of $85 a barrel will
help sustain growth in Alberta. [
Alternative Ways to Get Oil Exposure in ETFs.
For more information on Canada, visit our
iShares MSCI Canada (NYSEArca:
Max Chen contributed to this article.