Part-time work drives Canada job gain in October

Fri Nov 4, 2016 11:30am EDT
 
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By David Ljunggren

OTTAWA (Reuters) - The Canadian economy unexpectedly added tens of thousands of jobs for the second month in a row in October, but with the gain driven by part-time work, the Bank of Canada was likely to remain cautious about the outlook for the economy.

Statistics Canada said on Friday employment jumped by 43,900 jobs, while the jobless rate stayed at 7.0 percent as more people looked for work.

But Canada shed 23,100 full-time jobs as it gained 67,100 part-time positions. Analysts had expected a loss of 10,000 jobs after September's outsized gain of 67,200.

Economists acknowledged that the increase in part-time hiring made the details less upbeat.

"The Bank of Canada will take some comfort from jobs still being created," said Paul Ferley, assistant chief economist at the Royal Bank of Canada.

The central bank kept interest rates on hold last month but said it had considered cutting rates for the third time in two years.

"At the margin, it does slightly dim the chances of a rate cut, just ever so slightly," said Doug Porter, chief economist at BMO Capital Markets.

The goods-producing sector added 20,700 jobs thanks to strength in construction, while the services sector created 23,400 jobs.   Continued...

 
Construction workers work on a condominium development in Toronto December 6, 2012. REUTERS/Mark Blinch