UPDATE 3-Canada jobs bounce back in August, trend still weaker

Fri Sep 6, 2013 11:03am EDT
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* Canada adds 59,200 jobs in August, beats forecast

* Jobless rate ticks down to 7.1 pct from 7.2 pct

* Most jobs in service industries, part-time

By Louise Egan

OTTAWA, Sept 6 (Reuters) - Canada's economy churned out a surprising 59,200 jobs in August, nearly triple the number expected, but most of the gains were in part-time work and the six-month trend in the labor market remains modest.

The jobs report, released by Statistics Canada on Friday, suggests modest economic growth continuing through the third quarter and gives the Bank of Canada no reason to alter its policy of standing pat on interest rates for now.

The unemployment rate edged down to 7.1 percent from 7.2 percent, with most of the hiring done in the services sectors, led by health care and social assistance. However, there was no real evidence of a sustained comeback in the hard-hit manufacturing sector, which could indicate a long-overdue export recovery.

Economists surveyed by Reuters had forecast 20,000 net new jobs in August and no change in the jobless rate.   Continued...