Canada’s unemployment rate hits two-year high

Canada’s labor market unexpectedly lost jobs and the unemployment rate jumped to the highest level in more than two years, signaling greater slack in the economy that will test the central bank’s patient stance on rate cuts, Report informs referring to Bloomberg.

The country shed 2,200 jobs in March and the unemployment rate rose 0.3 percentage points to 6.1%, Statistics Canada reported Friday in Ottawa. The figures missed expectations for a gain of 25,000 positions and a jobless rate of 5.9%, according to the median estimate in a Bloomberg survey of economists.

This is the first job loss since July and the highest unemployment rate since January 2022. Outside of the Covid pandemic, Canada hasn’t had a jobless rate above 6% since 2017.

US data released at the same time showed the country added 303,000 jobs in March, beating estimates. After the reports, the Canadian dollar saw its largest intraday drop since February and was trading at C$1.3645 per US dollar at 9:50 a.m. Ottawa time. The yield on the benchmark Canada two-year bond slipped, down about four basis points on the day at 4.14%.