Sustained jobs growth could push BoC to raise rates again, economists warn
CTV
Employment in Canada showed modest growth in February after months of strong jobs gains, raising concerns that a bustling labour market could lead to more interest rate hikes.
Employment in Canada showed modest growth in February after months of strong jobs gains, raising concerns that a bustling labour market could lead to more interest rate hikes.
In its labour force survey Friday, Statistics Canada said the economy added 22,000 jobs last month, with employment up in the private sector.
The federal agency said the country's unemployment rate held steady at five per cent, hovering near record-lows.
The bulk of the job gains were made in health care and social assistance, public administration and utilities. Meanwhile, jobs were lost in business, building and other support services.
In January, the economy added 150,000 jobs, beating out forecasts significantly.
Though conditions in the labour market remain quite good -- with unemployment just above the all-time low of 4.9 per cent -- Statistics Canada's latest report showed a return to more modest employment growth.
Still, the ongoing strength in the labour market is making many economists nervous about the chance of more rate hikes.
