OTTAWA - Canada's economy created less than expected jobs last month, but unemployment unexpectedly fell to its lowest level for almost two years when less youth involved in the labour market. It is the last important data before the Central Bank final rate decision 2010 Tuesday, if it's widely expected pat are.
Employer a net 15 200 workers in November and the unemployment rate fell hired to 7.6% 7.9% in October, the lowest since January 2009, Statistics Canada said Friday. The market had expected 19,800 net new jobs versus 3,000 last month and add a steady rate of unemployment.
"This release the Canadian labour market in the coming months, we expect consistently with the side dynamics is", wrote TD Securities senior macro strategist David Tulk in a report. "With a view to the Bank of Canada meeting on Tuesday, there is nothing in this report, that rate of 1% will keep you from maintaining an overnight."
The Canadian dollar fell slightly immediately after the data has been published. The dollar $ 1.0009 just before the release was $ 1.0014 c of c. Officially it closed at C$ 1.0039 Thursday.
The employment report is "numerically okay" but there are some "qualitative" disappointment, especially a drop in full-time jobs and make a profit in part-time work, said the reverse of what happened in October, HSBC Securities Economist Stewart Hall.
StatsCan said a total 11,500 full-time jobs were eliminated last month, partially offset by the addition of silo facility part-time jobs.
The largest gains were in health care and social assistance, 28,400; Trade to 26,200; Hotels and restaurants to 16,600.
Manufacturing suffered the biggest drop in, lose one NET 28,600 jobs most since May 2009. The sector employment amounted 1.73 million, dropping by 47,000 or 2.6% from the previous year. StatsCan said that with the decline of production share of total employment, that qualify its long-term downward trend, to 10% in November, the lowest since 1976. That compares to 15% in the early 2000s and the share was almost half in 1976 when it was 19%.
Overall, employment in the sector were producing fell from 21,000 and 36,200 services producing increased.
Private sector employment fell 11,500 and was to 21,100 in the public sector. The number of self-employed increases by 5,700.
The workforce decreased from 43,600 and participation that is the proportion of people in the workforce fell to 66.9% from 67.2%.
Average hourly earnings year on year grew by 2.2% versus 2.1% in October. The rate for permanent edges up to 2.2% of 2%.
The Bank of Canada kept its benchmark rate steady at 1% Oct. 19 after three consecutive following 0.25 percentage increases each point. A sharper than expected slowdown in growth in the third quarter led some economists suggest, the Bank can raise prices in the early part of the 2011. Growth slowed to an annualized rate of 1% in the third quarter by 5.6% and 2.3% in the second quarter in the first three months of the year.
The pace of job creation has slowed down strongly in recent months compared with the first half of the year. Employment was in November to 318,000 or 1.9% from a year ago, said StatsCan.
"The jobs picture in Canada in the second half of the year little resemblance with the robust burst of jobs has growth seen in the first half created more than 300,000 jobs." With one month to go with links, job growth in the second half of the year running at less than 40 K jobs "Hall of HSBC wrote effects in a report."
"But how much of the developed world, seems that Canadian economy and large settlement to a slow growth mode will be marked by incremental change, as we head in 2011 and 2012 rather than robust economic recovery," he added.
Write toNirmala Menon at Nirmala.Menon@dowjones.com
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