Canada adds 32,300 jobs in March, as jobless rate stays at record low 5.8 per cent
The gains were made in the public sector, while the private sector lost jobs. Wage growth also strengthened, which the Bank of Canada will be keeping an eye on ahead its next interest rate announcement later this month
OTTAWA—The economy delivered 32,300 net new jobs last month as Canada generated a rush of full-time work that helped keep the national unemployment rate at its record low.
Statistics Canada said Friday the jobless rate stayed at 5.8 per cent in March for a second-consecutive month—and for the third time since December—to match its lowest mark since the agency started measuring the indicator in 1976. The only other time the rate slipped to this level was 2007.
The March gains were driven by a surge in full-time work. The labour-market survey showed the workforce added 68,300 full-time positions, while the number of part-time jobs decreased by 35,900.
However, the data also reveal that 19,600 of the new employee positions were created in the public sector. By comparison, the number of private-sector workers declined by 7,000.
Average hourly wage growth, which has been under close scrutiny by the Bank of Canada ahead of interest-rate decisions, strengthened in March to 3.3 per cent, up from 3.1 per cent the previous month.
The central bank, which will make its next rate announcement later this month, has repeatedly highlighted wage growth as a key indicator. Wage growth has been moving upwards since it bottomed out at 0.5 per cent in April 2017.
Central Canada saw the biggest job gains in March as the two largest provinces—Ontario and Quebec—each added more than 10,000 net new positions.
Quebec gained 16,000 net new jobs, including 28,600 full-time positions, while Ontario added 10,600 net new jobs, including 16,300 full-time positions.
For Ontario, however, the gain only represented a 0.1 per cent increase compared to the previous month. Quebec saw growth of 0.4 per cent.
By percentage, Saskatchewan and Alberta each saw solid monthly growth. Saskatchewan’s labour force expanded 0.7 per cent, while Alberta’s grew 0.4 per cent.
The youth unemployment rate dipped last month to 10.9 per cent, down from 11.1 per cent in February, following a net gain of 17,700 new jobs.
By industry, goods-producing sectors added 21,700 positions, mostly in construction. Services sectors created 10,600 jobs, with the bulk of the increase coming from new positions in public administration.
Compared with 12 months earlier, the national workforce grew 1.6 per cent following the creation of 296,200 jobs—with the entire increase fuelled by 335,200 new full-time positions.
But the latest numbers still suggest there are signs that Canada’s red-hot labour market could be starting to cool down, as widely expected.
Statistics Canada said employment declined by about 40,000 jobs over the first three months of 2018 for a decline of 0.2 per cent.