By Leah Schnurr
OTTAWA, March 11 (Reuters) - The Canadian economy
unexpectedly shed jobs last month, pushing the unemployment rate
to a nearly three-year high due mainly to a loss of full-time
positions, in the latest indication that growth remains
lackluster in the wake of the oil price crash.
Canada lost 2,300 jobs in February, Statistics Canada said
on Friday, missing analysts' expectations for a gain of 9,000.
The unemployment rate rose to 7.3 percent, its highest since
March 2013, although the participation rate held steady.
Economists and the market focused on the loss of 51,800
full-time positions that more than offset a 49,500 increase in
part-time jobs.
"It was pretty weak," said David Tulk, chief Canada macro
strategist at TD Securities.
Others noted that some of the swings could be anomalies. The
report can be volatile month-to-month.
"Many people saw the big decline in full-time employment and
the backup in the unemployment rate and read this as being a
very weak report," said BMO Capital Markets Chief Economist Doug
Porter.
"But I think it is just more of the same that we've seen
from the Canadian employment numbers in the last year, just a
slightly different tinge to it."
The Canadian dollar pared its gains against the greenback.
Economists still expect the Bank of Canada to hold rates steady
at its next meeting in April. CAD/ BOCWATCH
In Friday's report, the healthcare and social assistance
field saw the biggest losses, followed by the educational
services sector. The natural resources sector, which has
suffered from cheaper oil prices, continued to weaken.
Hiring in the construction industry jumped, although the
sector was little changed from a year earlier.
Oil-sensitive Alberta added a meager 1,400 jobs, but an
increase in people looking for work sent the unemployment rate
up to 7.9 percent there, its highest since August 1995.
Separate Statscan data showed Canadian household debt rose
to a record 165.4 percent of income in the fourth quarter as
disposable income grew more slowly than borrowers took on debt.
Household credit market debt, which includes consumer
credit, mortgages and other loans, rose, with mortgages making
up the bulk of debt outstanding. Over 2015, mortgages surged 6.3
percent, their strongest growth since 2011.
Years of low borrowing costs have encouraged Canadians to
take on more debt as the Bank of Canada has been forced to keep
interest rates low to support the economy. The central bank cut
interest rates twice last year.
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Graphic - Canada jobs, unemployment http://link.reuters.com/fax39t
Graphic - Full-time vs. part-time http://link.reuters.com/pev29v
Graphic - Temporary vs. permanent http://link.reuters.com/xuf98v
Graphic - Canada economic dashboard http://graphics.thomsonreuters.com/15/sc-canada/index.html
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