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The unemployment rate in Canada increased to 6.7% in February as the number of full-time employees decreased.
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Job losses are spread across sectors with services down 56,000 jobs and goods industries down 28,000. Youth unemployment has risen to 14.1%.
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Bitcoin remained near the $72,000 mark despite weak labor statistics, as traders assessed a slower rate hike.
According to Statistics Canada, the Canadian labour market experienced a sharp contraction during February, as employment fell by 83.900 positions. The unemployment rate rose to 6.7% due to weaker hiring conditions in several sectors. Bitcoin traders monitor employment indicators. Data from major economies like Canada and the United States may influence liquidity expectations.
Canada loses 83.900 jobs as unemployment rises to 6.7%
Economists expected a modest increase of around 10,000 jobs following January’s decline. The data instead showed one of the steepest job losses non-pandemic in recent years. This raised concerns about the economic momentum.
The decline was largely due to a sharp drop in full-time jobs. Statistics Canada reported a loss of 108,000 full-time positions during the month. Part-time employment was largely unchanged. The private sector also saw a decline in employment. Companies cut 73,000 jobs, adding pressure to the labour market.
Related: Canada’s Approach to Stablecoins: Safety First, Innovation second
Job losses across industries and regions
In February, the service-producing industries lost 56,000 jobs. During February, the goods-producing industries lost another 28,000 jobs. Wholesale and retail trade experienced the largest declines among service sectors. The industry lost about 18,000 jobs, continuing a downward trend which began late last year.
The manufacturing and construction industries also reported a reduction in payrolls, and a combined loss more than 21,000 positions during the month. Quebec had the largest drop in employment, according to regional data. The province lost 57,000 jobs, pushing its unemployment rate up to 5.9%. British Columbia reported a loss of approximately 20,000 jobs. Manitoba’s rate of unemployment fell slightly as some workers left the labour force instead of finding employment.
In February, youth employment declined as well. Around 47,000 jobs were lost among workers aged between 15 and 24, which pushed up the youth unemployment rate from 14.1% to 14.7%. The average hourly wage increased 3.9% in comparison to the previous year. Economists noted the rise was partly due to the loss of lower-paid positions, rather than a general wage increase.
Related: Why Bitcoin remains volatile after the latest US jobs report
Bitcoin and crypto markets track macroeconomic indicators
Investors monitor interest rate expectations, which is why macroeconomic data can have a significant impact on digital asset markets. Weak labour data may alter central bank policy forecasts. In March, the disappointing employment numbers in the United States caused volatility in Bitcoin trading. In February, the asset briefly fell to $70,000 as markets reassessed risks.
A softer labour-market may encourage future rate cuts. Sometimes, however, immediate reactions can go in the opposite direction. Investors may reduce their exposure to risky assets if recession fears increase.
The February labour report comes at a time of greater economic uncertainty. Digital asset markets continue to respond to macroeconomic signals and developments within the crypto sector.
Related: Crypto Market Rebounds As Bitcoin Surpasses $75K–Will this Rally Continue?
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