UPDATE 4-Canada job market stalls in October after hefty gains

Fri Nov 2, 2012 11:42am EDT
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* Economy adds 1,800 net new jobs; forecast was for 5,000

* Unemployment rate unchanged at 7.4 percent

* Analysts had expected slower job gains

By David Ljunggren

OTTAWA, Nov 2 (Reuters) - Canadian job growth stalled in October after two months of strong hiring, Statistics Canada data showed on Friday, confirming expectations employment gains would ease to reflect sluggish economic growth.

The economy added 1,800 jobs in the month, even lower than the small increase of 5,000 jobs forecast in a Reuters poll, while the unemployment rate held steady at 7.4 percent.

Economists have argued that with the economy expanding at a rate of about 2 percent, employment growth of the magnitude seen in the previous two months was not sustainable.

"It's not too surprising to find the Canadian labor market take a bit of a breather. The underlying details are still fairly positive," said David Tulk, chief Canada macro strategist at TD Securities.

"It's consistent with growth slowing into the third quarter and then recovering slowly thereafter."   Continued...