The domestic economy in Canada continued to surprise today, as the number of jobs created in February came in way above expectations.

The Canadian economy another 43,000 jobs in February, according to data released today by Statistics Canada. Economists had been expecting only about 8,000 jobs to be created for the month.

BMO Capital Markets chief economist Douglas Porter called today’s numbers “a true surprise” in his morning note. “Canada’s job market has more lives than Hillary Clinton,” he said. “In a nutshell, the persistent jobs strength simply drums home the point—yet again—that the domestic side of Canada’s economy remains incredibly healthy (for now), even amid mounting trauma in export-related sectors.”

The better-than-expected job growth pushed the country’s employment rate to a new high of 63.9%, said the federal agency. For the second straight month, the unemployment rate held steady at its 33-year low of 5.8%.

In the wake of the jobs report, the Canadian dollar gained more than a cent to hit US102.42¢ on currency markets.

Gains in full-time work were behind February’s job growth figure.

StatsCan said February employment growth was mainly in construction; public administration; and professional, scientific and technical services.

The construction sector added 21,000 jobs, all in Ontario, while the other two sectors both added about 16,000 jobs each.

As well, the Canadian manufacturing sector continued to shed jobs during the month, losing another 24,000 positions. Job losses in the sector over the last 12 months now total 106,000, according to the agency. StatsCan said the troubled manufacturing sector now represents 11.6% of total employment, a record low and far from the 15% share at the end of 2002, the start of the most recent decline.

TD Securities economic strategist Jacqui Douglas said she doesn’t expect this kind of jobs growth to last, as the effects of the weakening U.S. economy will surely seep over the border. “However, the Canadian labour market appears to have taken a page from the U.S. consumer, and just when you think that it’s sang its final song, it comes back to surprise you,” she wrote in a note.


U.S. economy sheds jobs

Meanwhile, U.S. recession fears mounted as employment fell in February at its fastest rate in five years, suggesting that the housing and credit crunch is gripping the broader economy.

Nonfarm payrolls fell 63,000 in February, the U.S. Labour Department said today, after falling 22,000 in January, which was the first decline in over four years. January’s decline was 5,000 more than first estimated. Had it not been for a solid rise in government jobs last month, payrolls would have fallen by over 100,000.

The U.S. unemployment rate fell 0.1 percentage point to 4.8%. That drop was triggered by a 450,000 decline in the size of the labor force, not a rise in employment.