Jobless rate rises unexpectedly to 6.1 percent

Fri May 9, 2008 7:07am EDT
 

OTTAWA (Reuters) - Canada's economy created 19,200 jobs in April, more than expected but still slower than in the first months of 2008 as the economy slows and some companies scale back expansion plans due to tighter credit.

Statistics Canada said on Friday the unemployment rate ticked higher to 6.1 percent from 6.0 percent in March because more people entered the work force. It was the first time since June 2007 the rate was that high.

Analysts polled by Reuters had expected, on average, some 10,000 additional jobs to be created last month and for the jobless rate to remain unchanged.

All the job gains in April were in full-time employment. Most new workers were self-employed and most got jobs in the public sector, which added 9,100 workers to its payroll while the private sector shed 8,300.

Wage growth subsided in April, a sign of easing pressures in the job market. The average hourly wage of permanent employees rose 4.2 percent year-over-year, down from 4.7 percent in March.

(Reporting by Louise Egan; editing by Renato Andrade)