Jobless rate slips to near-record 6.4 per cent in September
Last Updated: Friday, October 6, 2006 | 9:48 AM NT
CBC News
Canada's unemployment rate slipped to a near-record 6.4 per cent in September from 6.5 per cent the month before, as 16,200 new jobs were created.
The job-creation figure came in slightly above the 15,000 level that economists were expecting. September's new jobs brought an end to three straight months of job losses.
In its latest survey of unemployment in Canada, Statistics Canada said the unemployment rate for adult women fell to five per cent, the lowest level in 30 years, while the rate for adult men held at a healthy 5.5 per cent.
The federal agency noted the creation of 31,400 new part-time jobs in Canada, but it also pointed to a worrying sign — the loss of 15,200 full-time positions.
Canadian Labour Congress president Ken Georgetti said the loss of full-time jobs suggests that worse may be coming.
“The details look bad," he said. "The disappearance of 15,000 full-time jobs can only be a sign of harder times ahead even if the unemployment rate is down slightly.”
Factory employment actually increased by 19,000 last month — reversing the recent trend. So far this year, Canadian manufacturers have cut about 67,000 jobs.
Alberta once again had the lowest unemployment rate among the provinces, at 3.5 per cent. Ontario's jobless rate (6.6 per cent) was above the national average for only the second time in 30 years. Ontario lost 14,000 jobs last month.
Economist cite wage moderation as key development
The annual growth in average hourly wages moderated to 3.0 per cent in September, down from 3.7 per cent the month before.
"There is no compelling reason for the Bank of Canada to change its on-hold pattern," wrote BMO Capital Markets senior economist Doug Porter in a morning commentary. "On balance, the pullback in wages and the drop in full-time jobs are probably a bit more important than the (fluke?) rise in manufacturing jobs and the small drop in the unemployment rate, but this is basically a neutral report," he said.
TD Bank economist David Tulk agreed that the wage moderation is the "standout" statistic." With the threat of higher wages seeping into broader inflation subsiding, the Bank [of Canada] is now free to focus on the downside risk to economic growth posed by a slowing U.S. economy. Tulf sees the central bank cutting its key lending rate by half a percentage point in the first half of next year.
Most of Canada's job growth this year has been in the west. Alberta has accounted for more than one-third of all new jobs created in the country this year, but Saskatchewan created 7,000 new jobs in September, the fourth consecutive month in which employment hit a record high.
Newfoundland and Labrador also saw a healthy increase in employment.
