Canada adds 32,300 jobs, as unemployment rate stays at record low 5.8%

The last time the jobless rate was this low was in 2007

A worker uses a grinder on a steel at George Third & Son Steel Fabricators and Erectors, in Burnaby. (Darryl Dyck/The Canadian Press)

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.

READ MORE: Bank of Canada hikes interest rate to 1.25%, cites strong economic data

But looking underneath the headline numbers of the report, some economists argued the results were more of a mixed bag and contained little information to significantly alter the Bank of Canada’s thinking ahead of its April 18 interest-rate decision.

For instance, the data showed that 19,600 of the new employee positions created were in the public sector. By comparison, the number of private-sector workers declined by 7,000.

TD senior economist Brian DePratto also noted that 19,800 of the new jobs came in the less desirable category of self employment, which is a classification that includes people working in a family business without pay.

DePratto also pointed out that the number of hours worked remained relatively flat, as did wage growth, which has been hovering just above three per cent for a few months. While wage growth has improved considerably since the middle of 2017, DePratto thinks central bank governor Stephen Poloz is looking for wage growth above four per cent, where it was before the 2008-09 recession.

“Some strong elements, but some elements were a little bit on the weak side,” DePratto said of the overall jobs report.

Compared with 12 months earlier, the national workforce expanded 1.6 per cent with the creation of 296,200 jobs. The entire year-over-year growth was fuelled by 335,200 new full-time positions.

But in recent months the numbers have shown some evidence that Canada’s red-hot labour market could be starting to cool down as it reaches full capacity, which has been widely expected.

Statistics Canada said employment declined by about 40,000 jobs over the first quarter of 2018 for a decline of 0.2 per cent.

Royal Bank deputy chief economist Dawn Desjardins said the economy disappointed in those first three months of the year by posting its first quarterly employment decline since 2010.

Still, she cited several recent data points, such as wage growth, the low unemployment rate and rising core inflation, as reasons for the central bank to inch closer towards another rate hike. Poloz has raised the benchmark rate three times since last July.

“(They are) testing the bank’s argument that slack in the labour market remains,” Desjardins wrote in a research report.

“When you layer on the stealth increase in core inflation, the case for the bank to delay pulling back on the currently highly stimulative monetary conditions until the second half of the year is weakening.”

Andy Blatchford, The Canadian Press

Just Posted

UPDATE: Motorcyclist dies after three-vehicle crash on old Island Highway in Nanaimo

Accident happened at 12:15 p.m. Friday near Country Club Centre

Hospital and care residence in Nanaimo see flu outbreaks

Nanaimo Regional General Hospital’s Influenza A outbreak confined to rehabilitation unit

Smoke detector buys time in Gabriola house fire

Residents’ correct action kept fire from spreading, says fire department

VIU Mariners take the field for baseball season

Vancouver Island University baseball club begins CCBC play this Saturday

Dump truck driver hurt after highway crash in Ladysmith

One man airlifted to hospital after collision between dump truck and pickup truck Friday

Protective human chain forms around Victoria mosque for Friday prayer

Islanders stand arm-in-arm to show support in aftermath of New Zealand shootings

Beefs & Bouquets, March 21

To submit a beef or a bouquet to the Nanaimo News Bulletin, e-mail bulletinboard@nanaimobulletin.com

‘Families torn apart:’ Truck driver in fatal Broncos crash gets 8-year sentence

Judge Inez Cardinal told court in Melfort, Sask., that Sidhu’s remorse and guilty plea were mitigating factors

Vancouver Island motorists attempted CPR on victim in fatal Highway 4 crash

Collision took place west of Whiskey Creek; man in his 70s died

Boy who went missing from park remains largest probe in Victoria police history

The four-year old Victoria boy went missing without a trace on March 24, 1991

WestJet sticking with Boeing 737 Max once planes certified to fly

WestJet had expected to add two more of the planes this year to increase its fleet to 13

B.C. driver caught going 207 km/h on motorcycle along Okanagan Highway

A motorcyclist was caught by Kelowna RCMP going 207 km/h on Highway 97C

Protective human chain forms around B.C. mosque for Friday prayer

Vancouver Islanders stand arm-in-arm to show support in aftermath of New Zealand shootings

B.C. fire department offers tips to keep your home safe during wildfire season

With wildfire season getting closer, the Penticton Fire Dept. offer tips to keep your home safe

Most Read