Canada’s unemployment rate edged down 0.1 percentage points in April to 6.8%, the lowest since December 2000.
Statistics Canada said today that employment increased by 29,300 last month, as the economy added more than 49,000 full-time positions but lost slightly more than 20,000 part-time jobs.
Employment in the construction sector jumped by 26,000 last month, with almost all of the growth coming in Alberta and Quebec.
The professional, scientific and technical services sector added 23,000 positions in April, while the educational services added 29,000. There were also an estimated 23,000 additional workers in public administration, driven by increases at the municipal level for the second consecutive month.
Weakness in manufacturing continued in April as the country lost 29,000 factory jobs. Statistics Canada said the job losses were concentrated in Quebec and Alberta. Compared to 12 months ago, employment in manufacturing is down 3.1%.
The solid jobs report makes it more likely that the Bank of Canada will raise interest rates in July.
The central bank will tighten rates provided the U.S. soft patch does not deepen, said BMO Nesbitt Burns chief economist Sherry Cooper.
“The steady stream of solid Canadian data, a slight upward surprise in recent [consumer price index] readings and the generally softer Canadian dollar suggest that we must at least entertain the possibility of a rate hike by the Bank of Canada at the May 25 meeting,” she said.