TORONTO (Reuters) -Canada’s total employment fell and the unemployment rate ticked up to 6.7% in March, data showed on Friday, as uncertainty around tariffs and their subsequent implementation took a toll on hiring and spurred some layoffs.
Market reaction: [CAD/]
Link:
COMMENTARY
ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS
“The wheels may be starting to fall off the Canadian labour market, with a 33K decline in jobs during March falling well short of consensus forecasts for a 10K gain.”
“Overall, today’s report was clearly weaker than expected, although next week’s BoC surveys and global risk sentiment will also be key in determining whether the Bank continues to cut interest rates or elects to skip a meeting later this month.”
DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS, SCOTIABANK
“There was high breadth so the details tend to bolster how bad the headline was. The one thing I would flag though is that I think we are somewhat cooking the books in terms of the seasonal adjustment factors. It was the lowest seasonal adjustment factor for the month of March on record so that amplified or distorted some of the downside … It was soft but I think that’s a big caveat around the number.”
DOUG PORTER, CHIEF ECONOMIST AT BMO
“It is no surprise and we had expected activity would be chilling with all the trade uncertainty that we were dealing with in the first quarter. I don’t know if I will put this (the numbers) directly to the start of the trade war. The weakness was fairly broad based that wasn’t just in the sectors that would be directly related to trade. But this is the weakest reports we have seen in a number of years.”
“What transpired in last 48 hours has slightly increased the chances of a Bank of Canada rate cut.”
(Reporting by Fergal Smith and Divya Rajagopal; Editing by Caroline Stauffer)
Comments