TORONTO (Reuters) – Canada’s economy gained 72,500 net full-time jobs in March, Statistics Canada said on Friday. The unemployment rate fell to a record low of 5.3%.
Employment in the goods-producing sector increased by 30,600 net jobs, mostly in construction.
ROYCE MENDES, DIRECTOR AND HEAD OF MACRO STRATEGY AT DESJARDINS
“The strong pace of hiring reinforces our view that the Bank of Canada will act forcefully next week to ease inflationary pressures by raising rates by 50 basis points and launching its quantitative tightening program. continued release as traders close bets on aggressive central bank action.”
JIMMY JEAN, CHIEF ECONOMIST AT DESJARDINS GROUP
“We have 93,000 full-time jobs created. So that’s more than double what was expected. And remember, we’re coming off of a really good month of February, we had 122,000 jobs created. So, to follow with another 93,000 full-time jobs, that shows how robust this market is. You have an unemployment rate down two ticks; 5.3%… We are beyond full employment. We let’s see the marking warming up, and that shows with wage growth of 3.7%. It’s a four tick acceleration there. So those details that are coming in are very robust. From our perspective, that fully confirms the idea we have for next week of the Bank of Canada going ahead with a 50 basis point rate hike, and announcing the start of asset purchase unwinding, the reduction balance sheet.”
DEREK HOLT, VICE PRESIDENT, CAPITAL MARKETS ECONOMICS, SCOTIABANK
“To keep the job machine going, it takes a stronger one – tighter labor markets, lower unemployment. The only fly in the ointment is wages. Month after month, annualized and seasonally adjusted, they have So we’ve had a few months of a slight slowdown in wage growth, but not huge yet.”
“Overall, I don’t think it’s going to change anything for the Bank of Canada. I still expect (a hike of) 50 basis points next week.”
(Reporting by Fergal Smith and Steve Scherer; Editing by Denny Thomas)
Copyright 2022 Thomson Reuters.