An increase in potential workers entering the job market caused the national unemployment rate to rise in March, despite the creation of 14,600 new jobs.
According to Statistics Canada figures released Friday, the national unemployment rate rose to 6.0 per cent from February's 5.8 per cent, which was a 33-year-low.
The participation rate in the workforce -- people who are employed or looking for work -- reached a record high at 68 per cent.
Most of March's new jobs were part-time, while full-time work dropped significantly from the month before.
About 34,000 new part-time jobs were created in March, but there were about 19,600 less full-time jobs than the month before.
However, the StatsCan report pointed to longer term numbers that show a continued increase in full-time jobs over the past year, with full-time employment growing twice as fast as part-time.
The country has seen the creation of about 325,000 new jobs of both types over the past 12 months.
Most new jobs in West
The figures indicate job-seekers in British Columbia were more likely to have employment success than other Canadians in March, with 15,000 new jobs created in that province over the month, the highest number nationally.
"Alberta and British Columbia were the only provinces with notable employment gains in March," stated the report. "These provinces also set new records, as British Columbia's employment rate reached a high of 64.0 per cent, and Alberta's participation rate hit 74.7 per cent, the highest of any province."
Unemployed Ontarians and Quebecers were looking for work in a less accommodating climate as the jobless rates in those provinces rose by 0.3 percentage points. Ontario's March unemployment rate was 6.1 per cent of the workforce, while Quebec's was 7.1 per cent.
Interest rates could drop
Economists say the new figures show few signs of stress to the employment landscape, except in the lagging manufacturing sector.
And after two months of major job gains, the country's economy was due to see a slowdown eventually, Royal Bank economist Paul Ferley told The Canadian Press.
"To ensure that any spillover for a weakening U.S. economy is contained, we expect that the Bank of Canada will continue to lower interest rates," Ferley added.
"Our forecast assumes that the overnight rate drops a further 75 basis points over the next two policy meetings. This will send the overnight rate down to 2.75 per cent by mid-year."
With files from The Canadian Press
