OTTAWA — Greater Victoria’s unemployment rate edged down in April to 6.5 per cent from the 6.9 per cent in previous month as the national economic recovery continued to gain momentum.
Canada gained a “shockingly”high 108,700 jobs in April, led by the services sector.
The gain was the largest on record and the biggest percentage increase since August 2002, Statistics Canada said Friday. April also marked the fourth straight month of higher job numbers, and overshadowed the March total of 17,900.
All the job gains in April were in the private sector, with part-time work, 65,000, outstripping full-time jobs, at 43,800. The full-time gain, however, more than compensated for a 14,200 decline in the previous month.
“The employment increase in April brings total gains since the start of the upward trend in July 2009 to 285,000,” Statistics Canada said.
Most economists had forecast between 20,000 and 25,000 job gains for April, with the unemployment rate remaining at 8.2 per cent.
“This was undoubtedly a shockingly good —and in some way inexplicable — jobs report for Canada,” said Millan Mulraine, economics strategist at TD Securities.
“And while we believe that the strong economic recovery should continue to help the Canadian economic create jobs at a very respectable clip, this is clearly an unsustainable pace of job growth and we suspect we are likely to see some moderation in the pace of jobs growth in the coming month.”
Canada’s economic recovery has come much faster than anticipated, as record-low interest rates helped to drive the housing market higher and spurred retail spending.
The Bank of Canada, in its recent quarterly monetary policy report, forecast economic growth of 3.7 per cent in 2010, up from its previous reading of 3.1 per cent. That pace is likely to slow to 3.1 per cent in 2011 and 1.9 per cent in 2012, the central bank said.
Still, the surprisingly high job numbers for April could mean the Bank of Canada will need to raise interest rates as early as next month.
“So much for talk that the recovery was simmering down,” said Douglas Porter, deputy chief economist at BMO Capital Markets. “This dramatic surge certainly tips the odds back in favour of the bank beginning to hike rates in June, although clearly the global financial backdrop can still weigh back in.”
Statistics Canada said the retail and wholesale trade sectors had the biggest gains in April, adding 32,000 jobs. Business, building and other support services gained 31,000 positions, while construction rose by 24,000, and the information, culture and recreation sector grew by 20,000. One drawback in the April data was that the manufacturing sector shed 20,600 jobs, after adding 3,900 employees in the previous month.
The employment gains were mainly among men aged 25 and over and youth, the agency said, with little change among women.
All provinces saw increases in April, with the biggest jumps recorded in Ontario, Quebec, British Columbia, Alberta and Manitoba.
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