Canada smashes expectations with 150,000 jobs gain in January

OTTAWA (Reuters) -The Canadian economy gained a net 150,000 jobs in January, smashing expectations, while the jobless rate held steady at 5.0%, Statistics Canada (Statscan) data showed on Friday.

Analysts surveyed by Reuters had forecast a net gain of 15,000 jobs and for the unemployment rate to edge up to 5.1% in January.

Statscan revised Decembers net gains downward to 69,200 jobs.

Januarys job additions, the fifth consecutive monthly gain, were driven primarily by the core-age group of 25 to 54 year-olds and were spread across several industries, Statscan said.

Labor market tightness was among the main reasons behind the Bank of Canadas decision in January to raise rates for the eighth time in less than a year, according to minutes from its policy-setting meeting released on Wednesday.

After the last hike, the central bank said it would hold off further moves to let the effects of past rate increases sink in, but it has not completely ruled out more increases.

The Canadian dollar strengthened 0.6% to 1.3375 per greenback, or 74.77 U.S. cents.

Employment in the goods sector increased by a net 25,400 jobs led by construction.

Service sector jobs jumped by a net 124,700, mostly in wholesale and retail trade and the healthcare and social assistance subsectors.

The average hourly wage for permanent employees rose 4.5% in January on a year-over-year basis, down from 4.7% in December.

(Reporting by Ismail Shakil; Additional reporting by Fergal Smith in Toronto and Dale Smith in Ottawa; editing by Jason Neely, Kirsten Donovan)