TORONTO (Reuters] – Canada gained a net 72,500 full-time jobs in March according to Statistics Canada. Record low 5.3% was the jobless rate.

The net increase in employment in the goods-producing sector was 30600, mainly in construction.

Market reaction

STORY:

Link: https://www150.statcan.gc.ca/n1/daily-quotidien/220408/dq220408a-eng.htm

COMMENTARY

ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS

There may still be some hope for the unemployment rate falling further as certain regions of the country, such as oil-producing areas, were obviously not in full employment prior to the pandemic.

Although today’s numbers are not as strong as those of the previous month, they still support the Bank of Canada calling for a 50-basis point increase next week.”

ROYCE MENDES, DIRECTOR & HEAD OF MACRO STRATEGY AT DESJARDINS

The solid pace of employment confirms that we believe the Bank of Canada would act next week to curb inflationary pressures. They will both raise rates 50 basis points and initiate a quantitative tightening programme. As traders place bets that the central bank will take aggressive action, bond yields have risen in response to the news release.

JIMMY JEAN CHIEF ECONOMIST, DESJARDINS GROUPE

The full-time creation of 93,000 jobs is a record. This is more than twice what we expected. We are just coming off of a February strong month, when 122,000 jobs were created. To follow-up with 93,000 more full-time positions, it shows just how robust this market really is. There has been a 2-tick drop in unemployment rates 5.3 %…. We are now beyond full employment. With the 3.7% wage increase, we’re starting to see the mark heating up. It’s four tick acceleration. These details are extremely robust. We believe it supports the Bank of Canada’s view of next week, which is to increase the rate by 50 basis points and then announce that they will begin the asset buy unwind.

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS, SCOTIABANK

To keep the job creation engine running is a plus. Tighter labour markets and lower unemployment are key. Payroll is the one thing that can be cut out of this job creation machine. Their annualized adjusted for season fell from month to month. There has been a slight slowing in wage growth over the past few months, but it is not significant.

“On the whole, I do not think that it will change anything at Bank of Canada. Next week, I expect (a 50 basis point) increase.”