Canada Gained Jobs in January


Canada gained more jobs than expected in January, led by part-time positions for youth, pushing the unemployment rate down. Employment rose by 43,000 last month, and the unemployment rate fell to 8.3 percent.

Full-time employment rose by 1,400 in January, while part- time jobs surged by about 41,500, Statistics Canada said.

The country lost 16,000 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 lost 280,000 jobs.

Goods-producing industries fired 23,100 workers in January while services sectors hired 66,100 people. Porter said that result plays to the fact that the recovery is being led by domestic demand and not so much by exports.”

Employment for people aged between 15 and 24 improved by 29,300 positions, led by a 25,800 gain in part-time work. The unemployment rate for that group fell to 15.1 percent, from 16 percent in December.

Employment in the business, building and other support services sector grew by 34,400 workers, and retailers and wholesalers hired 23,400 workers. Self-employment dropped by 24,000 while the number of employees rose 67,000.

Ontario accounted for more than half the gain with an improvement of 30,300 jobs.

Average hourly wage growth decelerated to 1.8 percent in January from a year ago, Statistics Canada said, compared with 2.4 percent in the previous month. It was the slowest pace of wage growth since June, 2003. Bank of Canada Governor Mark Carney said yesterday that slowing wage growth will help restrain inflation.

Statistics Canada revised December’s employment loss on Jan. 29 to 28,300 from 2,600, and lowered the unemployment rate to 8.4 percent from 8.5 percent.


TradingEconomics.com, Bloomberg
2/5/2010 8:49:14 AM