Canada’s Unemployment Rate Falls to Lowest Since COVID-19

Canada added more jobs than expected in March to bring the unemployment rate to its lowest since the pandemic hit, Bloomberg reported.

• The country reported 303,100 jobs in March after gaining 259,200 in February.
• The unemployment rate dropped to 7.5%, the lowest since before the coronavirus disease 2019 pandemic.
• Canada has now recovered all but 296,000 of the nearly 3 million jobs lost during the height of the pandemic. Hours worked rose 2%, driven by gains in educational services and construction. 
• The market expected a gain of 100,000 jobs and an unemployment rate of 8%. Analysts said the figures indicate that the economy and jobs can recover quickly when things reopen again. 
• Yields on the benchmark 10-year Canada government debt jumped to 1.536% as of 9:13 a.m. It was as low as 1.515% earlier Friday.
• The government is scheduled to release its 2021 budget on April 19, which includes a promised additional dose of spending. The Bank of Canada’s next policy decision is on April 21, with the market expecting a tightening.