Canadian employment fell in March by the most since the last recession four years ago, a surprise decline led by full-time work and the hospitality industry. The drop of 54,500 positions reported today by Statistics Canada offset a 50,700 gain in February, and the unemployment rate rose for the first time in five months, to 7.2 percent from 7 percent. Economists surveyed by Bloomberg News projected a 6,500 job gain and 7 percent unemployment, according to median forecasts. The report brings the labor market more in line with other parts of the economy, where output growth slowed to a 0.6 percent annualized pace in the fourth quarter and inflation has lagged the central bank’s 2 percent target since May. Statistics Canada also reported the country’s 11th straight merchandise trade deficit today. Full-time employment fell by 54,000 in March while part- time work declined by 400 positions, according to the Ottawa- based agency’s report. Private companies cut 85,400 workers and public-sector employment fell by 7,700. Workers designated as employees by Statistics Canada fell by 93,100 while self-employment increased by 38,700. Accommodation and food service fell by 24,900 jobs in March, followed by cuts of 24,300 in public administration and 24,200 in manufacturing. A.O. Smith Corp. said April 3 it will close a residential water heater plant in Fergus, Ontario, with 350 workers. The Milwaukee-based company said in a statement the industry was “burdened with overcapacity for a number of years,� adding “we have been facing a challenging economic environment as a Canadian manufacturer.� Average hourly wages of permanent employees rose 2.1 percent in March from a year earlier, the agency said, lagging the prior reading of 2.2 percent. To contact the reporter on this story: Greg Quinn in Ottawa at gquinn1@bloomberg.net To contact the editors responsible for this story: Chris Wellisz at cwellisz@bloomberg.net; David Scanlan at dscanlan@bloomberg.net

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