- Brown Brothers Harriman & Co
The Canadian economy lost 2,100 jobs in April, while the unemployment rate remained unchanged at 7.1%, according to Statistics Canada. The data followed massive employment gains of 40,600 new jobs created in March. On an annual basis, the employment rose by 144,000, led by both full-time and part-time positions. The latest data provided further evidence of a growing regional divergence in Canada, as commodity-reliant provinces like Alberta faced the biggest cuts, while other non-energy dependent areas used the oil price shock to grow. The oil-rich Alberta reported that 21,000 fewer people were employed there. In contrast, 13,000 new positions were added in western British Columbia, which brought the jobless rate down to 5.8%, the lowest level in all the provinces.
Economists have been looking to Canada's manufacturing industry to pick up the slack from Canada's resources sector, which has struggled amid low commodity prices. The Bank of Canada projects growth of 2.8% during the first quarter of the year, but warns that the Q1 boost is likely temporary, with much softer gains estimated for the second quarter.
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