Canada jobs: Unemployment rate falls to lowest level on record

Canada jobs hit record unemployment as further covid restrictions were lifted in Ontario, Manitoba, Alberta, and Quebec (Getty Images) (PATRICK T. FALLON via Getty Images)

Canada's job market continued to charge ahead in March, adding 73,000 jobs.

Statistics Canada says the unemployment rate fell to 5.3 per cent, the lowest level since record keeping began in 1976.

The gains were entirely in full-time work (93,000) as part-time work contracted, and split between services-producing (42,000) industries and goods-producing industries (31,000).

Job growth was largely driven by Ontario and Quebec.

Total hours worked rose 1.3 per cent in March. Average hourly wages rose 3.4 per cent year-over-year.

The number of people working from home fell 1.8 percentage points to 20.7 per cent.

Bank of Canada's interest rate path

"The solid pace of hiring reinforces our view that the Bank of Canada will act forcefully next week to quell inflationary pressures by both hiking rates 50bps and initiating its quantitative tightening program," said Royce Mendes, Desjardins managing director and head of macro strategy.

"Bond yields are pushing higher in the wake of the release as traders firm up bets on aggressive action from the central bank."

Others say the strong headline number isn't enough to convince the Bank of Canada to get more aggressive.

"The still-muted pace of wage growth suggests the Bank of Canada may not need to tighten policy as aggressively as markets are now pricing in," said Stephen Brown, Capital Economics' senior Canada economist.

Jessy Bains is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jessysbains.

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