Yahoo Finance Canada adds 34,700 jobs in March, blowing away expectations
The Canadian economy added more jobs than expected in March and the jobless rate remained near a record low for the fourth consecutive month, data showed, indicating continued labour market strength despite fears of an economic slowdown.
The economy gained a net 34,700 jobs, almost entirely in the private sector, and the unemployment rate held steady at 5.0 per cent, Statistics Canada reported.
Analysts surveyed by Reuters had forecast that a net 12,000 jobs would be gained in March and the unemployment rate would edge up to 5.1 per cent from 5.0 per cent in February.
That was the seventh straight monthly job gains and brought the net increase in the number of people employed since September to 383,000. Since December, the jobless rate has stayed just a notch above the record low of 4.9 per cent observed in mid-2022.
The Bank of Canada left its key overnight interest rate on hold at the 15-year high of 4.50 per cent in March, but Thursday’s jobs figures as well as robust GDP data released last week are likely to complicate the central bank’s plans to avoid further rate moves. The bank’s next rate decision is due on Wednesday.
The Canadian dollar was trading at 1.3470 per U.S. dollar, down 0.1 per cent on the day, after the jobs data.
The employment gains last month were driven by the services sector, which added a net 75,500 jobs, mostly in transportation and warehousing as well as support services. Those additions more than offset the decline of 40,900 jobs in the goods sector, which was dragged down by job losses in construction as well as natural resources.
The average hourly wage for permanent employees rose 5.2 per cent in March on a year-over-year basis, down from 5.4 per cent in February. There were 18,800 full-time jobs added in the month, and 15,900 part-time jobs.
© Thomson Reuters 2023
