Canadian economy adds record jobs in April

[Sharon Singleton – Money]

Canada added the most jobs on record in April as men over the age of 25 returned to work in droves, adding to evidence the economy is among the strongest in the world.

Employment increased by 109,000, about four times the pace economists had been expecting, with the unemployment rate edging down 0.1 percentage points to 8.1%, Statistics Canada said. About two-thirds of the increase was among men over the age of 25, it said.

The figures add further evidence to continued strength in the Canadian economy, which the central bank forecasts to have grown almost 6% in the first quarter.

They also provide a rare bright spot after a week of turmoil on global markets and prompted economists to talk again about an early rise in interest rates here.

HSBC wrote of the “Return of the jobs generating juggernaut” in its morning note, while BMO titled its report, “Canada: we’re just a jobs machine.”

“Just as the rolling European crisis looked like it could ice the Bank of Canada for a spell, the domestic economy has served a rather loud warning that it needs tending to as well,” BMO Capital Markets Deputy Chief Economist Doug Porter said.

“April’s 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.”

The Canadian dollar, which has slumped in recent days on concerns over the sovereign debt crisis in Europe, surged 1.8% on the figures before pulling back to trade at 95 cents US.

The drop in the unemployment rate also comes despite more people returning to the workforce during the month, StatsCan said. The economy has added 285,000 jobs since the upturn began in July last year.

In April, 65,000 part-time jobs were created and 44,000 full-time. All were in the private sector.