A surprisingly robust jobs report has reinforced the notion that Canada's economy is not in a recession, despite lingering concerns about growth... Statistics Canada reported that the economy added 88,000 jobs in May, surpassing economists' expectations for a gain of 10,000 positions.

The $88,000 jobs boost

The unemployment rate fell to 6.6 per cent last month, down from 6.9 per cent in April. The gains for May were the first significant increase in employment since November. Growth last month was concentrated in full-time work, and was widespread across industries.

Construction led the way with a gain of 27,000 jobs, followed by the information,culture and recreation sector and the transportation and warehousing industry. Tariff-sensitive maanufacturing also posted job gains in May.

The wholesale and retail trade sector took the heaviest hit with a loss of 35,000 positions in the month.

Interest rate decision looms

The May jobs report marks the last major economic release before the Bank of Canada's interest rate decision on June 10 .. Financial market odds for an interest rate hike from the Bank of Canada next week stood at more than 95 per cent as of Friday at noon,according to LSEG Data & Analytics.

While a strong jobs report might normally bolster arguments for interest rate hikes from the Bank of Canada, recent quarterly GDP data suggest the economy is still 'fragile.' Lingering risks on the U.S. trade and geopolitical fronts could still hamper growth in the months ahead.

What's still unknown

Despite the strong job results, there are still questions about the sustainability of growth. Can the economy continue to add jobs at this pace, or is this a one-off boost? And what impact will the ongoing trade tensions with the U.S. have on Canada's economy in the months ahead?