The only economic data out Monday shows that Canada’s jobs market was not as weak as feared in April and May.

Statistics Canada reported that average weekly earnings for May grew by 1.8% over the year, rising above consensus expectations of a 1.4% increase.

“The rise in May is considerably higher than the 1.3% increase seen last month, and is the largest in almost three years,” said RBC Financial.

Also, payroll employment in May increased by 16,600, following April’s data which was revised to flat. Initially it was reported that employment slipped by 19,000. “Gains were seen in every province, barring Manitoba, and across most sectors of the economy,” RBC observed. “As expected, however, declines were seen in SARS-affected industries such as accommodation and food services, and arts, entertainment, and recreation.”

“This rise in payroll employment in May and the revision to April numbers contrast the declines seen in the Labour Force Survey for the same period, which were the weakest in seven years. This suggests that the deterioration in the labour market over April and May was not as bad as implied by the Labour Force Survey numbers. Also, this adds more credence to the positive numbers seen in June,” RBC concluded.