Canada Unemployment Rates Drops a Notch, as Government Hires More Workers.

The Canadian economy added twice as much as expected new jobs in March, while the unemployment rate plunged, though most jobs were part-time and in the public sector, indicating businesses are still wary of hiring.

The Statistics Canada announced on Friday that employers absorbed 42,900 net new workers in March; more than double the market’s forecast of 20,000. The unemployment rate plunged from 7.0 to 6.9 percent.

30,100 Canadians were hired part-time in March, while 12,800 clinched full-time jobs. The public sector hired 39,300 employees, contrasted to 3,900 in the private sector.

Most of the jobs were added in the social assistance, business, healthcare and other support sectors. Farming shed 12,400 workers. Overall, the economy absorbed 190,000 new workers in the year to March, out of which 137,000 workers were hired on full-time basis.

“Overall this is good news for the economy,” Doug Porter, a chief economist at BMO Capital Markets told Reuters. “I think (the Bank of Canada) will be encouraged by this number. I don’t believe it moves the needle significantly. As I’ve said before, I do think this quashes talk of rate cuts, at least for now”

At least 30,000 absorbed workers were youth aged 15-24, while statistics for those aged at least 25 years remained slightly unchanged. Jobless rate among the youth stood at 13.6 percent.

The Finance Minister Joe Oliver revealed that though he was happy with the results, he will not dwell on it.

“While these gains are positive, we must continue to focus on jobs and the economy with the global economy remaining fragile,” said Oliver.