Canada economy has already started to create jobs, more jobs than expected were created in February, led by full-time positions, while the jobless rate declined for a second month, pushing the Canadian dollar to its strongest level since July 2008, according to reports.

Employment rose by 20,900 last month, the second straight gain and fifth in seven months, Statistics Canada said today in Ottawa. The unemployment rate fell to 8.2 percent.

Canada’s first recession since 1992 ended in the third quarter last year and the economy expanded at its fastest pace since 2000 in the fourth quarter.

“The market is trading this as a good news story,” said Stewart Hall, an economist at HSBC Holdings Plc in Toronto. “I’m surprised, because I thought we would need something bigger to get the market rolling.”

The country gained 87,700 jobs over the past 12 months, supporting comments by policy makers that the labor market has stabilized. From the employment peak in October 2008, Canada has lost more than 250,000 jobs.

The Canadian currency strengthened immediately after the report. It traded at C$1.0153 from C$1.0240 yesterday, which is considered a Fresh 19-Month High Below $1.02.

For the U.S. dollar, it fell versus major rivals, with the euro breaking through resistance after a stronger-than-expected rise in industrial output.

The Japanese yen also strengthened versus the dollar, after initially losing ground in Asian hours after Japanese Prime Minister Yukio Hatoyama told parliament the yen was too strong.