Jobless rate increased to 6.1
Average hourly wage growth rose to 5.0
Traders see 76 chance of June rate cut

OTTAWA, April 5 Reuters Canada39;s economy unexpectedly shed a net 2,200 jobs in March, largely in the services sector, while the jobless rate increased to a new 26month high of 6.1, data showed on Friday.

The weak jobs data spurred money markets to increase their bets for a June rate cut, although they still expect a hold from the Bank of Canada BoC at its next announcement on Wednesday.

Analysts polled by Reuters had forecast a net gain of 25,000 jobs and the unemployment rate to rise to 5.9 from 5.8 in February.

With the 0.3 percentage point rise the biggest jump since August 2022 the unemployment rate is the highest since the 6.5 recorded in January 2022. Before the COVID19 pandemic, Canada39;s jobless rate was last as high as 6.1, in November 2017.

The average hourly wage growth of permanent employees, however, accelerated to an annual rate of 5.0 from 4.9 in February, Statistics Canada said.

The growth rate of wages closely tracked by the central bank because of its effect on inflation accelerated for the first time in three months.

South of the country39;s border, U.S. jobs data came at the same time as Canada and surprised to the upside, adding 303,000 jobs in March against a forecast of 200,000 jobs, signaling continued economic strength in the country.

Analysts and economists have said that the BoC is likely to lead the Fed in rate cuts…