Serj Panchuk
On April 8th at 11.00GMT Statistics Canada released its Unеmploymеnt Rаte report for March.
Previous data 7.8% Forecast 7.7%.
Unеmploymеnt Rаte is a more important indicator for the labor market than Unemployment Change even though it is a delayed one. It also indicates the overall economic situation in the country.
The unemployment rate is calculated as the ratio between the unemployed and the employed. It should be noted that every country has its own acceptable unemployment limit. For a flourishing state the acceptable limit of unemployment deviates from 3% to 7% of the working population. However, when there is no unemployment at all, there is no stimulus for workers, which worsens the quality of labor and products.
The economists interviewed by Market News International expected that despite the predicted increase in the amount of new jobs the unemployment rate will stay at the same level of 7.8 %. Paul Ferley of Royal Bank of Canada (RBC) also expected that the unemployment level wouldn’t change.
Craig Alexander, chief economist for TD Economics, expected 35000 new jobs to be created in March and the unemployment rate to decline down to 7.6%.
However, there were no new jobs created but the unemployment rate declined.
Nevertheless analysts assume that the 7.7% unemployment rate won’t seriously affect the Canadian Dollar exchange rate.
The data are released during the first days of the month following the reporting one.
Serj Panchuk
