Canada Unemployment Rate Falls as Economy Adds 60,900 Jobs
Oct. 7 (Bloomberg) — Canada’s economy added the most jobs in eight months in September, led by hiring at schools, bringing the country’s jobless rate to its lowest since 2008 and adding to evidence the country is averting a new recession.
Employment rose by 60,900 after a decline of 5,500 in August, Statistics Canada said in Ottawa. The unemployment rate fell to 7.1 percent, its lowest since December 2008.
The rise marks a recovery for the country’s labor market after the economy added a net 1,600 workers in the previous two months, bringing the average monthly gain in the third quarter to 20,833.
Finance Minister Jim Flaherty said in an e-mailed statement today the jobs data reflect the country’s growth prospects.
“September’s job growth shows Canada is on the right track for steady, modest job creation and economic growth,” Flaherty said in the statement. He also said the unemployment rate still remains too high.
The jobs report is the last before the Bank of Canada’s next interest-rate decision on Oct. 25. The central bank has held its key rate at 1 percent since September 2010, and Senior Deputy Governor Tiff Macklem said in a Sept. 27 speech policy makers would be “prudent” with interest-rate increases during a slow economic rebound threatened by weak U.S. demand and Europe’s debt crisis.
Today’s jobs report also highlights some of the “headwinds” faced by the economy, Tulk said. Half of the 16 industries tracked by Statistics Canada recorded declines, which were offset by boost from a “statistical quirk” in the data for education services.
The monthly gain was led by 38,400 new jobs in education services, and a 35,600 increase for professional and scientific services. Public sector jobs rose 36,900, while employment in the private sector was down 14,900.
The finance, insurance, real estate and leasing industries saw 35,300 jobs lost in the month. Construction companies added 11,600 new jobs during the month, while natural resources firms hired 17,100 workers.
Canada’s jobless rate has been below the U.S. since October 2008. The Labor Department in Washington today reported payrolls climbed by 103,000 workers in September, compared with a median forecast of 60,000 in a Bloomberg News survey.
In Canada, full-time employment rose by 63,800 in September, while part-time jobs fell by 2,900.
Canadian average hourly wages rose 1.5 percent in September from a year earlier, the report said. Wages rose at a 1.4 percent pace in July and August, the slowest June 2003.
Self-employed workers rose by 38,900, while workers classified as employees increased 22,000.