Employment rose by 30,600, Statistics Canada said in Ottawa. The jobless rate fell to 8.4 percent from August’s 8.7 percent.
The report may increase pressure on the Bank of Canada, with its benchmark rate at a record low, to follow Australia into raising borrowing costs. The central bank lowered its benchmark lending rate to 0.25 percent this year and pledged to keep it there until June 2010 unless the inflation outlook changes materially.
The public sector, along with manufacturing and construction, led the rise in September employment. Construction, benefiting from rising home prices and a government stimulus package that targets the industry, added 24,600 jobs during the month.
Manufacturing firms, which have fired more than 200,000 workers since the start of the recession at the end of last year, added 26,100 jobs. Eight of the 16 industries tracked by Statistics Canada recorded job gains.
A 91,600 increase in full-time jobs was offset by a 61,000 decline in part-time employment, the statistics agency aid.
Canadian average hourly wages rose 2.5 percent in September from a year earlier, the slowest pace in two and a half years, Statistics Canada said today.