Canada Adds 54,900 Jobs; Five Times What Was Forecast

[PhilipShore]

Source: Bloomberg

April 5 (Bloomberg) -- Canadian employers added 54,900 jobs in March, five times what economists forecast, suggesting the Bank of Canada may raise interest rates to control inflation.

The jobless rate stayed at a three-decade low of 6.1 percent as more people entered the workforce, Statistics Canada said today in Ottawa. Economists predicted 11,000 new jobs for March and a 6.1 percent jobless rate, based on the median of 24 estimates in Bloomberg News survey.

Bank of Canada Governor David Dodge has kept the main lending rate at 4.25 percent since May, saying the risk of inflation veering from his 2 percent target is balanced between rising consumer spending and the prospect a slower U.S. economy will hamper exports. Previous job gains already led families with new paychecks to drive home prices to record highs.

``With this kind of job growth it's inevitable it will spill over into wage pressures,'' said Mark Chandler, a fixed- income strategist at RBC Capital Markets in Toronto. The next interest rate move ``will be up, but we think it's more likely next year than this year,'' he said.

Read more: http://www.bloomberg.com/apps/news?pid=20601082&sid=aIKmcxcqUxPs&refer=canada

[valerief]

1. Real jobs or McJobs? nt

[Kagemusha]

2. The economic fundamentals have looked good there for several years

So I'd be inclined to guess, enough real jobs to matter, even without having seen the details myself. And that's with the Canadian dollar stubbornly staying fairly high relative to the US dollar because the US dollar has been drifting downward internationally for some time now.

[depakid]

4. Canada also has a federal budget surplus

because they have sensible fiscal policies.

[valerief]

7. Glad I'm invested in a Canadian fund! Thanks. nt

[AnneD]

3. If their methods of reporting are more honest than ours...

and they have no reason to be dishonest, I'd bet they were real jobs. We need some Canadians to weigh in.

[Sen. Walter Sobchak]

6. I'm not a Canadian but I am stuck here...

Canada is having something of a labour crisis, high paying jobs in the oil business mean that those who would be working McJobs in the US are making pretty good money. That means there is really nobody to do alot of the McJobs. And Canada has a really harsh immigration system and no real source of illegal immigrants to take up the slack at the bottom of the market.

I have seen this just about everywhere I have been in Canada since getting here in July, however Canada isn't the land of milk and honey, the healthcare system is no better than your average HMO, the current government is extremely pro-Bush and while we are war mongering in Iraq - their war mongering in Afghanistan with their foreign adventure being just as unpopular as ours in Iraq.

I am basically here as an enforcer making sure our clients interests are being reflected in the governance of a joint venture.

[valerief]

8. Maybe they'll let in some illegal Americans to take the jobs that

Canadians refuse to do.

[treestar]

11. If people really migrate for things like that then it is amazing

that there are not many Americans illegally living in Canada.

[nodehopper]

10. healthcare no better than the average HMO?

except that it's not tied to employment, so you are not screwed if you lose your job, right?

[Sen. Walter Sobchak]

12. yes and no

There is a hell of alot the Canadian system does not cover, most people have significant suplemental health coverage supplied by their employer.
You won't die in the street, but you still have to fight the inane medical bureaucracy to get much beyond your family doctor.

[kineneb]

13. I'll take their healthcare system any day

We have gone through Chapter 7 bankruptcy because Hubby became disabled and we could no longer pay our bills.

Also, for him to continue to get decent health coverage, we can no more than ~$1435 income per month income from any sources (MediCal).

And because I only qualify for rural indigent medical coverage, (California's CSMP), I have a $280 per month spend down before I have any coverage (this translates to living on no more than $934/mo., an amount which has not been adjusted since 1997).

I would so happily take a "healthcare system (which) is no better than your average HMO".

[DeepBlueC]

14. no better than an HMO...??!!!

I have been here a long time myself and I would dispute that premise. Even if it were true, the difference is that EVERYONE is covered.

[Kagemusha]

15. Canada has a relative ton of legal immigration

Not sure if it's remained at the same high level but... the fact it doesn't roll over for illegal immigration must have a big impact then...

Certainly immigration by people who won't be able to get real jobs is not much encouraged.

[roamer65]

5. Health benefits are much cheaper in Canada than the US.

Probably another reason for the good report.

[BayCityProgressive]

9. Wow good for Canadians

this probably means Harper will be around for quite a while though!