08:59 AM EST, 03/07/2025 (MT Newswires) -- The Canadian economy only added 1,100 jobs over the month, well below expectations for a 20,000 increase, said Desjardins, following Friday's Labour Force Survey (LFS).

That comes after three months of strong job gains in which the economy added 211,000 new jobs. The unemployment rate remained unchanged at 6.6%, largely due to a two tick drop in the participation rate, noted the bank.

Population growth further cooled from the previously "torrid" pace, clocking in with the slowest growth since April 2022, pointed out Desjardins.

Total hours worked fell 1.3% due to snowstorms, which impacted Central and Eastern Canada. Average hourly earnings rose 0.5%, taking the annual rate back up to 3.8%, but that's largely due to the effect of the sharp decline in hours worked.

The slowdown in hiring even before tariffs were implemented gives the Bank of Canada an easy pass to cut interest rates another 25 basis points next Wednesday, stated Desjardins.

Markets are pricing almost 90% odds that the central bank eases again. Rates are falling across the Government of Canada yield curve following the weak jobs numbers after Thursday's selloff, added the bank.