Canada sheds more jobs than expected
OTTAWA (Reuters) - Canada's economy lost more jobs than expected in February as the global downturn triggered widespread layoffs, another sign the country's recession may be more severe than many previously thought.
Statistics Canada said net job losses totaled 82,600 in the month, compared with forecasts for a decline of 52,500. It was the fourth straight month of declines.
The jobless rate climbed to 7.7 percent, the highest since a rate of 7.9 percent in September 2003 and above the market forecast of 7.4 percent.
"A U.S. style pace of labor market deterioration has landed on Canada's doorstep," said Derek Holt, economist at Scotia Capital.
Doug Porter, deputy chief economist at BMO Capital Markets, said: "Between all the job losses concentrated on full-time positions and the unemployment rate bouncing up more than expected it was clearly a very weak report from head to toe."
The Canadian dollar weakened after the report to C$1.2825 to the U.S. dollar, or 77.97 U.S. cents, from C$1.2786 to the U.S. dollar, or 78.21 U.S. cents just before the numbers.
The bleak data added to the news last month that job losses in January were the steepest on record at 129,000, sending shock waves through the country and nudging politicians to advance a fiscal stimulus package through Parliament.
Economists have been scrambling lately to mark down their forecasts for the economy this year and this data suggests the Bank of Canada may do the same in its next chance to do so in April.
"They (Bank of Canada) might go more bearish near term," said Holt. "They've thrown off plenty of signals that they're committed to doing what it takes to get to their growth number next year." Continued...