The unemployment rate in Canada was last reported at 7.8 percent in January of 2011. From 1976 until 2010, Canada’s Unemployment Rate averaged 8.53 percent reaching an historical high of 13.10 percent in December of 1982 and a record low of 5.90 percent in September of 2007.
The Canadian economy has created an average of 40,000 jobs per month for the past five months. But February’s tepid gain disappointed after two strong months, so markets will be watching to see if the lull was temporary.
During the economic recovery Canada has generally regained lost jobs faster than the United States, but that trend may be reversing as the neighboring economy outperformed Canada in
February and posted a second straight month of solid gains in March.
The employment report is the last data point available to the Bank of Canada ahead of its April 12 interest rate announcement. While market players have effectively ruled out the chances of a rate hike this month, strong job numbers could convince investors to pull forward their forecasts on the timing of the next rate hike.
The Canadian dollar would likely get a boost from an upbeat report, or slip from recent highs if the numbers disappoint.