Canada’s unemployment rate fell to its lowest level ever as the labor market posted strong
employment gains in March.
The economy added 72,500 jobs in March following a blockbuster gain of 337,000 in February,
Statistics Canada reported. The jobless rate in Canada is now at 5.3%, its lowest level since
monthly records began in 1976.
Economists were anticipating employment to increase by 80,000 and the unemployment rate to
fall to 5.4% in March. The unemployment rate had been at 5.5% in February.
The latest jobless rate is another indication that Canada’s economy is running up against labor-
force capacity and will stoke expectations for aggressive Bank of Canada interest rate increases
in coming months -- including a half-point hike at its policy decision next week.
Canada has now added one million net new jobs since last June. The job gains illustrate the
extent to which the economy has emerged strong after successive waves of COVID-19
lockdowns.
Yields on Canadian government two-year bonds jumped after the report, up 8 basis points to
2.46% in Toronto trading.
Full-time employment in Canada accounted for all of the increase in March, up 92,700. Part-
time employment fell in March.
Another sign of a tight labor market is strengthening pay gains, with average hourly wages up
3.4% from a year earlier, compared to 3.1% in February.
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