Investing.com - The Canadian labor market expanded in February, as the number of people employed unexpectedly rose, increasing the chance that the Bank of Canada will increase rates soon.
Data from Statistics Canada showed on Friday that the economy created 55,900 jobs in February, largely driven by increases in the professional, scientific and technical services. Most of the rise in employment was in Ontario and Quebec. Economists had forecast an increase of 3,000 jobs.
The unemployment rate fell to 3.8%, beating the consensus forecast of 3.9%.
The data questions the Bank of Canada’s decision on Thursday to keep interest rates on hold, citing trade concerns. The central bank expects the economy to be weaker in the first half of 2019, largely due to inflation and the unknown impact of trade volatility between the U.S. and China.