Canada seen adding 25,000 jobs in April
WHAT: Canadian April employment report
WHEN: Friday, May 7 at 7 a.m. (1100 GMT)
REUTERS FORECAST: The median forecast of 23 analysts is for a net gain of 25,000 jobs in the month, following a modest gain in March of 17,900. Forecasts range from 10,000 to 50,000.
The median forecast for the unemployment rate is 8.2 percent, unchanged from the previous month. Forecasts range from 8.1 percent to 8.3 percent.
FACTORS TO WATCH:
Recovery: Even though policy makers warn there is still considerable slack in the economy and that fiscal woes in Europe cloud the horizon, the Canadian economy is recovering much faster than anyone predicted. This could nudge businesses into more hiring, bringing the number of employed closer to pre-crisis levels.
The job market has been recovering steadily since last July, but as of March had recovered less than half the jobs lost during the recession.
The economy expanded a healthy 0.3 percent in February, the sixth straight monthly increase, and appears on track to meet the Bank of Canada's projected 5.7 percent annualized growth in the first quarter. Both the central bank and the government have raised their forecasts for 2010 growth to 3.7 percent and 3.1 percent, respectively.
Business investment: The Bank of Canada judges that business investment levels will start recovering as of the current quarter. Its first-quarter survey of senior business managers showed companies have firm intentions to expand their workforces over the next year as a result. Continued...