11.03.201820:53:00UTC+00Canada Adds New Jobs in February, but Wage Growth Decelerates

The Canadian economy added 15,400 jobs in February following a big loss in January but full-time positions contracted and wage growth decelerated, prompting analysts to predict the Bank of Canada will be in no rush to hike rates.

According to Statistics Canada, the jobless rate declined to 5.8 percent from 5.9 percent in January.

The mixed nature of the data is likely to reinforce the Bank of Canada's cautious stance on interest rates after it stayed on the sidelines on Wednesday.

Bank of Canada Deputy Governor Timothy Lane recently said the central bank is not on a preset course regarding interest rates, adding it will view future rate moves cautiously and assess incoming data.

The gains were found in the part-time sector, which added 54,700 positions, while the full-time sector lost 39,300 jobs. Average hourly wages for permanent employees increased by 3.1 percent from last February, which is lower compared to the 3.3 percent year-over-year growth in January.

Andrew Kelvin, senior rates strategist at TD Securities, noted the loss of full-time jobs and slowing wage growth.

On a year-over-year basis, employment increased by 282,500, or 1.5 percent, while the six-month average for employment growth was 19,000, down from 20,100 in January.

According to a separate report, Statscan said industrial capacity reached a 10-year high. Capacity utilization rose to 86.0 percent, the most since the 86.0 percent posted in the second quarter of 2007.