Canada sheds jobs in March, increasing bets for June rate cut

A help wanted sign hangs in a bar window along Queen Street West in Toronto Ontario, Canada June 10, 2022. REUTERS/Carlos Osorio/FILE PHOTOOTTAWA, April 5 - Canada's economy unexpectedly shed a net 2,200 jobs in March, largely in the services sector, while the jobless rate increased to a new 26-month high of 6.1%, data showed on Friday.

With the 0.3% percentage point rise - the biggest jump since August 2022 - the unemployment rate is the highest since the 6.5% recorded in January 2022. Before the COVID-19 pandemic, Canada's jobless rate was last as high as 6.1%, in November 2017. South of the country's border, U.S. jobs data came at the same time as Canada and surprised to the upside, adding 303,000 jobs in March against a forecast of 200,000 jobs, signaling continued economic strength in the country.

Money markets increased their bets for a rate cut in June to close to a 76% probability from 67% before the numbers were released. "Today’s evident weakening in the labor market only makes it tougher for policymakers to uphold a wait-and-see attitude, and this really opens the door for a strong dovish pivot by the BoC that hints toward a rate cut in June," said Kyle Chapman, FX Markets Analyst at Ballinger Group.

Source: Financial Digest (financialdigest.net)

REP CEN ECI ECO GDP ILEI INT JOB MCE MMT MPLT PLCY WPAY AMERS CA NAMER CA/JOB ECON TOPNWS GRAPHC MTGFX MTPIX ANLINS PXP TOPCMB

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