Canada Unexpectedly Added Jobs


Canadian employers unexpectedly added jobs in October as the federal government hired workers to run last month's election while most industries posted declines.

Employers added 9,500 workers, Statistics Canada said today in Ottawa, after a record gain of 106,900 in September. The unemployment rate rose to 6.2 percent from 6.1 percent, in line with economists' forecasts, due to more people looking for work.

Employment in public administration jumped by 39,800 in October as the country geared up for national elections on Oct. 14, the statistics agency said. Goods-producing industries, such as manufacturing and construction, and services-related employers outside of government shed jobs.

The Canadian dollar advanced to C$1.1955 per U.S. dollar at 7:23 a.m. in Toronto from C$1.1980 late yesterday. Canada's currency has lost 17 percent against the U.S. dollar this year.

Growth in the world's eighth-biggest economy will slow to 0.6 percent this year, the least since 1991, the Bank of Canada said in an Oct. 23 forecast. The country is suffering from weak demand in the U.S., and slumping prices for commodities, which generate about half the country's export revenue.

Factory-owners shed 8,600 workers in October, bringing their losses over the past 12 months to 47,300 jobs. All five goods- producing industries tracked by Statistics Canada trimmed payrolls, including a drop of 8,800 workers in construction.

Still, the global downturn isn't affecting Canada as much as other countries. Employers this year have added 203,300 workers through October, increasing the number of jobs in the country by 1.2 percent, Statistics Canada said.

Canada will be the sole nation among the Group of Seven industrialized economies -- which also include the U.S., Japan, the U.K., Germany, Italy and France -- to record economic growth next year, according to International Monetary Fund projections released yesterday.

Wage growth decelerated in October, advancing at a pace of 4.3 percent, compared with 4.6 percent in September. That's still faster than inflation, with consumer prices advancing 3.4 percent in September from a year earlier.


TradingEconomics.com, Bloomberg.com
11/7/2008 5:01:31 AM