WRAPUP 2-Canada's job gains biggest in 7 months, buoyed by manufacturing

Fri Jun 5, 2015 11:55am EDT
 
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(Adds details on wage pressures picking up)

* Job gains beat expectations

* Wages for permanent workers rise

* Bank of Canada seen holding steady on rates for now

By Leah Schnurr

OTTAWA, June 5 (Reuters) - Canadian jobs growth surged by the most in seven months in May, buoyed by strength in the manufacturing sector, in an encouraging sign following an oil-induced economic slump at the beginning of the year.

The monthly jobs report also showed wage pressures picking up, but it did not alter expectations that Canada's central bank will likely keep interest rates unchanged for now following a surprise rate cut in January.

Canada added 58,900 jobs last month, data from Statistics Canada showed on Friday, handily topping expectations for a gain of just 10,000. A tick up in the participation rate saw the unemployment rate hold at 6.8 percent.

The report was a welcome improvement from April, when Canada lost 19,700 jobs, and raised hopes the economy was rebounding from a first-quarter contraction blamed largely on lower oil prices. Oil is a major Canadian export.   Continued...