Canada Adds 11,900 Jobs in September; Jobless Rate Dips to 6.9% - Update
--Unemployment rate falls below 7% level for first time since December 2008
--Labor force declined by 25,100, mostly younger Canadians
--Hiring in financial services, natural resources helped power September job gain
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By Paul Vieira
OTTAWA--Canadian job growth slowed in September, although it came in slightly ahead of economists' expectations on the
strength of hiring in the financial-services and resource sectors, Statistics Canada said Friday.
Meanwhile, the country's unemployment rate fell below the 7% threshold for the first time in nearly five years, but
that was largely due to an exodus of young people from the labor force.
The Canadian economy created 11,900 net new jobs in September, after adding 59200 jobs in August. Market expectations
were for a 10,000 gain in September, according to economists at Royal Bank of Canada.
The unemployment rate fell for the second straight month, to 6.9% in September from 7.1% in August, marking the lowest
jobless rate for Canada since December 2008. Traders had expected no change. However, the data agency attributed the
decline to 25,100 Canadians dropping out of the labor force, the bulk of them Canadian youth.
The participation rate, or the share of the population that's in the labor force, also fell to 66.4% from August's
66.6% reading, and that represents the lowest level in over a decade.
The Canadian dollar edged up on the jobs report, with the U.S. dollar falling to C$1.0380 from C$1.0399 just before
the data release at 8:30 a.m. EDT.
With the September data, job growth in Canada has averaged 23,100 a month on a six-month basis, or just above the
21,600-a-month average recorded in the comparable year-ago period. Based on data for the first nine months of 2013,
average monthly job growth in Canada is 12,600, versus 23,400 for the same period last year.
Year-over-year, employment in Canada rose 1.2%, for 212,400 net new jobs. The data agency noted that the employment
rate -- or percentage of the population, aged 15 and over, with a job -- was little changed over the period. In
September, the employment rate declined to 61.8% from 61.9% in the previous month.
All the jobs created in September were of the full-time variety. Canada added 23,400 full-time jobs, while part-time
positions declined 11,500. The number of the so-called self-employed also shrank in the month, by 45,400.
In terms of individual sectors, hiring in the financial sector -- covering finance, insurance, real estate and
leasing -- led the way, adding 33,200 positions in September. Firms in the natural resources sector hired 19,000 new
employees, the biggest advance for this category in two years.
Offsetting these job gains were a 26,000 decline in manufacturing jobs, and a 14,100 fall in construction-sector jobs.
Meanwhile, annual hourly wages rose 1.8% in September after a 1.5% advance in the previous month.
Write to Paul Vieira at firstname.lastname@example.org
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