Canada adds 34,000 jobs in August, outpacing July loss

Fri Sep 7, 2012 3:56pm EDT
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By Randall Palmer

OTTAWA (Reuters) - The Canadian economy added 34,300 jobs in August, recouping all 30,400 positions lost in July, as it returned to the recent trend of slow net increases in employment, Statistics Canada data on Friday showed.

The gains topped the expectations of analysts surveyed by Reuters. They predicted, on average, a gain of 10,000 jobs, and the highest prediction was for 25,000.

All the job gains were part time, mirroring part-time losses in July. The unemployment rate remained at 7.3 percent, as forecast, because more Canadians looked for work in August.

"It's likely to support the already hawkish stance of the Bank of Canada. We've had a slew of some disappointing domestic data recently, so this is a positive development for the Canadian dollar," Scotiabank chief currency strategist Camilla Sutton said.

That said, markets priced in a slimmer chance that the Bank of Canada will raise interest rates after the Canadian figures, which were released at the same time as weaker-than-expected U.S. jobs data.

The U.S. data increased speculation the U.S. Federal Reserve is now more likely to pump additional money into its sluggish economy. Many analysts think Canada's central bank will be more reluctant to tighten monetary policy while its U.S. counterpart is easing.


In the details of the Canadian report, August saw an estimated 46,700 new part-time positions and 12,500 fewer full-time jobs. In July, there was a loss of 51,600 part-time jobs and a gain of 21,300 full-time positions.   Continued...

A man looks at a job board posted at a job fair in Toronto, April 1, 2009. REUTERS/Mark Blinch