The Globe and Mail reports in its Saturday edition that Canada's unemployment rate remained at 6.6 per cent in February, with only a slight increase in new jobs, highlighting the potential impact of U.S. tariff uncertainty on hiring. A Reuters dispatch to The Globe reports that the economy added 1,100 jobs, that compared with 76,000 jobs added in January and a total increase of 211,000 from November to January, according to Statistics Canada. Analysts had estimated the unemployment rate at 6.7 per cent and net addition of 20,000 jobs in February. This is the last major data before the Bank of Canada's monetary policy decision on March 12. Currency swap markets indicate a 73-per-cent chance of a seventh consecutive interest rate cut to 2.75 per cent. The Canadian dollar extended losses after the labour data, trading down 0.3 per cent to 1.4339 versus the U.S. dollar. Yields on two-year government bonds were down 3.9 basis points at 2.6 per cent. Canada's unemployment rate has been improving since a peak of 6.9 per cent in November, thanks to falling interest rates. However, uncertainty over U.S. tariffs has affected hiring intentions, and economists warn that unemployment could worsen if the tariffs are imposed.
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