Canada’s labor market continues to show resilience with 30.3K new jobs added in February

Statistics Canada released its unemployment report on Friday that suggested 30.3K new jobs added to the economy in February. The unemployment rate, on the other hand, increased marginally to 5.6% last month.

The data came out sharply stronger than expected on Friday as analysts had estimated a much smaller 10K new jobs in Canada in February. The unemployment rate, however, matched the economists forecast that was previously reported at 5.6% for February. Wages for Canadian permanent employees is also an indicator that the Bank of Canada follows closely. According to Statistics Canada, a 4.3% growth in this measure for recorded in February.

Job Growth Was Confined To The Full-Time Positions In February

Friday’s data also highlighted that job growth was confined to full-time positions. Goods-producing industries added 5,600 news jobs in February that were largely attributed to manufacturing. The gain helped offset the decline noted in natural resources and construction industries last month.

The total increase in jobs in the services sector was recorded at 24,600 in February that was associated with the gains in Canada’s retail and wholesale trade sector.

Friday’s data echoed what Governor Stephen Poloz of the Bank of Canada had commented on Thursday that the labor market continues to show resilience in Canada. He further expressed confidence that it will help a great deal in protecting the economy against the adverse effects of the Coronavirus epidemic in the long run.

In January, Statistics Canada had recorded 34.5K new jobs while the unemployment rate remained capped at 3.5% in its previous report.

Financial Markets Expect Another Rate Cut In April

Owing to the rising concerns of the health emergency that originated in Wuhan, China and is rapidly spreading across borders and is threatening the global economy, Canada followed in the footsteps of the U.S and announced a 0.50% point of cut in its benchmark overnight rate in an attempt to provide a fiscal stimulus for economic support. The BoC also accentuated that it will remain open for the next cut if need be as the financial markets forecast it as early as in April.

Friday’s economic data couldn’t stir a massive movement in the forex market that remained undecided primarily because of the U.S unemployment and job growth figures turning green for February as well. The USD/CAD currency pair surged to 1.3437 from 1.3379. Part of the gain, however, was lost later in the day with the pair having closed the last week at 1.3420.