Canadian employment rose more than five times faster last month than economists predicted on gains in full-time positions from retailing to construction. The jobless rate increased as the labor force expanded.
Employment rose by 52,100 following an August gain of 34,300, Statistics Canada said in Ottawa. The jobless rate rose to 7.4 percent from 7.3 percent as the labor force grew by 72,600. The job gain exceeded all 24 forecasts in a Bloomberg economist survey with a median of 10,000. The unemployment rate was forecast to be unchanged.
Bank of Canada Senior Deputy Governor Tiff Macklem said yesterday that some slack remains in the job market and reiterated policy makers may raise their 1 percent benchmark interest rate as the economy recovers. Other Group of Seven central bankers have added stimulus this year to boost growth including asset purchases by the U.S. Federal Reserve.
“This looks like a strong report despite the rise in the jobless rate,” Canadian Imperial Bank of Commerce Chief Economist Avery Shenfeld wrote in a note to clients.
The Canadian dollar appreciated 0.6 percent to 97.46 cents per U.S. dollar at 9:50 a.m. in Toronto. One Canadian dollar buys $1.0260. Yields on the two-year government of Canada bonds rose 5 basis points to 1.14 percent.
Full-time employment rose by 44,100 in September. Part-time positions rose by 8,000, Statistics Canada said. Private companies added 29,100 workers and public-sector employment fell by 10,800.
Retailers and wholesalers added 34,100 workers in September. Construction employment gained by 28,800 following a decline of 44,000 in August that was the largest since December 2008.
The companies adding to payrolls include Air Canada. Last month the country’s largest airline said it will hire 200 flight attendants and pilots in the next year for a new leisure carrier and more than 900 additional employees at the main airline.
Workers designated by Statistics Canada as employees rose by 18,300 while the self-employed increased by 33,800 in September.
Average hourly wages of permanent employees rose 3.3 percent from a year earlier, lagging the prior reading of 3.7 percent. That measure, which the Bank of Canada says is a key indicator of inflation, rose 3.9 percent in July, the fastest since April 2009.
Unemployment will average 7.2 percent next year and 6.9 percent in 2014, according to a Bloomberg economist survey.
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