- Desjardins
Canada's labour market enjoyed a steep increase in new jobs in March that unexpectedly pushed down the unemployment rate and provided another clue that the Canadian economy could be regaining steam. According to Statistics Canada, the job market created 40,600 net new positions in March, driving the jobless rate to 7.1% from a three-year high of 7.3% in the previous month. The gain was much bigger than the 10,000 jobs economists had predicted. Measured on an annual basis, the employment surged by 130,000, mainly driven by full-time gains. The majority of the newly created positions were full-time work in the service-producing sector, which saw an additional 75,000 jobs in March, making it the biggest advance in four years. If compared to the US standards, Canada's unemployment rate was 6.1% in March compared to the American 5%.
Employment data comes just a few days before the Bank of Canada interest rate announcement due on April 13. Canada continued to battle the negative effects of lower oil prices, which increased the gap between the commodity and non-resource sector. Economists expect an updated economic forecast from the central bank that includes the recently introduced federal fiscal stimulus.
© Dukascopy Bank SA