The Canadian economy added 50,000 jobs in April, pushing the unemployment rate down to 7.3%, Statistics Canada reported today.

That is its lowest level since September 2001

The jobless rate in March stood at 7.5%.

StatsCanaid the jobs added in April were all in full-time work.

The economy picked up about 56,000 full-time jobs, but shed about 6,000 part-time positions.

“So far in 2004, full-time employment has grown by 117,000 while part-time employment has fallen by 87,000,” Statistics Canada said.

The April job growth followed two months of declines, and could take the pressure off the Bank of Canada to reduce interest rates next month, she said.

Employment in the health care and social assistance sectors rose by 19,000 last month, continuing an upward trend that began two years ago. The gain for April was primarily in offices of health care practitioners.

The construction sector and the finance, insurance, real estate and leasing sector each added 13,000 jobs in April.

The latest job figures handily beat economists’ expectations.

“While today’s report is not an all-clear signal for the labour market, it should dampen any lingering talk that the Bank of Canada needs to cut rates again,” BMO Nesbitt Burns says. “As such, the solid number will act as a lifeline for the sinking loonie.”

TD Bank agrees that, “This morning’s employment release has put a much brighter glow on Canada’s labour market, and certainly makes the job losses of the past two months look like little more than a hiccup. And, it goes without saying that the strong April job tally will promptly have quashed any talk of further rate cuts from the Bank of Canada, and will certainly help to push bond yields higher.”

While conceding that the jobs picture looks better, CIBC World Markets says, “It’s still a bit of a mystery what Canadian workers are doing with their time. As of February (the most recent month for GDP data), a 1.5% year-over-year employment gain had produced only 1.6% real GDP growth. That flat productivity record stands in stark contrast to the US, and continues to suggest that Canada has over-hired and that cost cutting remains overdue.”

National Bank Financial cautions that part of the job market strength in April might be weather-related, as the 13,100 new jobs in construction came after 18,200 jobs lost in the previous three months. “Looking ahead, we expect job creation to moderate in 2004 as factories will restructure to restore profit margins weakened by the loonie’s rise in 2003.”