Canada sheds 7,200 jobs in March, jobless rate remains at 5.8 pct

TORONTO: Canada's economy lost a net 7,200 jobs in March, largely in full-time work, Statistics Canada said on Friday. The jobless rate was flat at 5.8 percent.

Employment in the goods-producing sector grew by 1,600 jobs, mostly in manufacturing. The services sector lost a net 8,800 positions, mostly in healthcare and social assistance, partially offset by gains in the finance, insurance, real estate, rental and leasing.

Market reaction: CAD/

LINK: https://www150.statcan.gc.ca/n1/daily-quotidien/190405/dq190405a-eng.htm

COMMENTARY

NATHAN JANZEN, SENIOR ECONOMIST, ROYAL BANK OF CANADA

"We got a little dip in employment, but the numbers are volatile and it's been on a pretty strong run over the prior half year ... all in all, I think not a huge surprise. Labor markets still look pretty tight."

"Labor markets haven't been a worry for (the Bank of Canada) for a while because they've been so strong, and there are still some concerns about the global economic backdrop. Inflation pressures seem well in hand, household credit growth has already slowed, so all the factors that prompted them to move to the sidelines over the last few months are still in place."

AVERY SHENFELD, CIBC ECONOMICS, CHIEF ECONOMIST

"The party had to end at some point, since Canadian jobs data had outrun other signposts of economic growth so dramatically, making the small retreat in employment in March not much of a surprise."

"There's nothing great about this report, but first quarter hiring still looks very brisk, if anything still too brisk for an economy that's likely chugging along at a 1% to 1.5% growth rate."

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS, SCOTIABANK

"I think the Bank of Canada will be agnostic to the Canadian ones (job numbers). The more important ones are on the US side in terms of how they impact the markets. The torrid pace of job growth that we've had in Canada over recent months has only suffered a very, very minor setback on the latest month. So I think they'll still focus on the trend."