Canada's unemployment rate was little changed in March as gains in full-time work were offset by declines in part time positions.

The impressive recent string of job gains came to an end last month as the economy actually shed 1,500 jobs for the first time since last September, although the unemployment rate did manage to slip to 7.7 per cent.

Bombardier Aerospace employees assemble an aircraft in March. Canada's unemployment rate slipped to 7.7 per cent in March. ((Canadian Press))

The agency said there were 90,600 full-time jobs added, while part-time work fell by 92,100.

"The real eye-popper in this report was the 90,600 surge in full-time jobs, which was countered by a slightly larger dip in part-time positions," noted BMO Capital Markets deputy chief economist Doug Porter.

This large full-time increase brought gains in full-time employment to 251,000 over the past 12 months, while part time increased by 54,000.

That small amount of jobs losses in March is considered statistically irrelevant by economists — although it fell short of their call for a 20,000 gain.

The agency said there were gains in accommodation and food services which added 36,000 as well as construction which added 24,000 in March, while 17,000 job losses were tallied in health care and social assistance and 13,000 were lost in public administration.

Interest rates

RBC assistant chief economist Dawn Desjardins said recent reports have proven to be stronger than anticipated by the Bank of Canada, likely leading to an upgrade of the central bank's growth forecast for 2011 in next week's Monetary Policy Report.

"Although there is little chance that the Bank will raise the overnight rate in April, the statement will provide the basis on which the Bank will make its upcoming policy decisions. To the extent that growth remains firm and labour market conditions solid, the need for very stimulative policy will diminish," she said.

"Today's report supports our expectation that the Bank will return to rate hike mode in the months ahead. Given the uncertainties facing the world economy, it is likely that they will wait until July before implementing the next 25 basis point increase in the overnight rate."

At least, any boost in future Canadian interest rates would be the result of a stronger jobs outlook, experts said.

"We still expect the unemployment rate to come down a few more ticks in the quarters ahead, putting pressure on the Bank of Canada to resume rate hikes in July," noted Emanuella Enenajor, an economist with CIBC Economics.