By Julie Gordon and Ismail Shakil
(Reuters) -Canada posted a blockbuster job gain in February, easily beating expectations, while the unemployment rate dropped below its pre-pandemic level for the first time, data from Statistics Canada showed on Friday.
The economy added a net 336,600 jobs, more than double the 160,000 analysts had forecast, that data showed. The jobless rate fell to 5.5%, its lowest level since 5.4% in May 2019, as Canada reopened from strict Omicron restrictions.
Hours worked surged 3.6%, rising above February 2020 levels for the first time, with overall employment now 1.9% above pre-pandemic levels.
“Obviously, economists were expecting a rebound but clearly not of this magnitude,” said Doug Porter, chief economist at BMO Capital Markets.
“Part-time jobs accounted for roughly two-thirds of the gain but, still, to see a month where hours worked rose by 3.6% and the unemployment rate threatened to go through a modern day low … this is a very impressive report.”
Full-time employment rose by 121,500, while 215,100 part-time jobs were added. The average hourly wage of permanent employees rose 3.3% year-over-year.
The jobs gain comes as the Bank of Canada is widely expected to go ahead with second rate hike at its next meeting in April. Money markets see a 70% chance of an quarter point increase to 0.5%, with 30% betting on a 50-basis-point move.
The Canadian dollar was trading 0.4% higher at 1.2720 to the greenback, or 78.62 U.S. cents.
(Reporting by Julie Gordon in Ottawa and Ismail Shakil in Bengaluru; Additional reporting by Fergal Smith in Toronto; Editing by Alison Williams)
