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U.S.Economy: 
Canada Unemployment Rate Holds at 6.1%
Author: 123jump.com Staff
123jump.com
Last Update: 9:43 AM ET October 10 2008


Following a decline in July and a small gain in August, employment increased by 107,000 in September. Almost all of this increase was in part-time work +97,000. Despite the gain, the unemployment rate was unchanged at 6.1%, as the increase in employment was matched by a similar rise in labour force participation.

 
This is the unedited press release from Statistics, Canada


Following a decline in July and a small gain in August, employment increased by 107,000 in September. Almost all of this increase was in part-time work (+97,000). Despite the gain, the unemployment rate was unchanged at 6.1%, as the increase in employment was matched by a similar rise in labour force participation.

Over the first nine months of 2008, employment has increased 1.1% (+194,000), a slower pace of growth compared with 1.7% (+275,000) during the same period last year. With September''s increase, part-time work has increased by 131,000 so far in 2008, nearly double the increase in full time. This contrasts with the first nine months of last year, when gains were mostly full time.

Five provinces accounted for the overall employment increase this September: Ontario, Quebec, Alberta, Saskatchewan and Nova Scotia.

There were widespread gains by industry in September. The largest increase in employment came from health care and social assistance, followed by business, building and other support services, and manufacturing. Employment also increased in transportation and warehousing, agriculture and construction.

The number of private sector employees rose by 56,000 in September, with smaller gains in the self-employed (+30,000) and the public sector (+21,000). So far in 2008, employment has grown mainly among private sector employees.

Youths aged 15 to 24, people aged 55 and over and core-aged women aged 25 to 54 all experienced employment gains in September. Employment rose by 45,000 among youths, while it was up by 41,000 for older workers and by 24,000 for core-aged women.

The year-over-year growth in average hourly wages for September was 4.6%, well above the most recent increase of 3.5% in the Consumer Price Index. Compared with a year earlier, average hourly wages were higher for all age groups, with growth being strongest for youths and older workers.

Over the first nine months of this year, the labour market in Canada has followed a trend different from that of the United States. So far in 2008, employment in Canada has been growing, albeit at a slower pace compared with last year, while in the United States employment has fallen. When adjusted to approximate United States measurement concepts, the unemployment rate in Canada has remained relatively stable at around 5.3% so far this year, while in the United States, it has risen by 1.1 percentage points to 6.1%.

Employment up across many industries

Employment in health care and social assistance rose by 40,000 in September, erasing losses observed over the previous three months. This leaves employment in the industry 2.8% above the level at the end of last year.

In September, employment was up by 20,000 in business, building and other support services. Despite the latest increase, employment in the industry remained 5.1% lower than the level observed at the end of last year.

Manufacturing employment increased by 20,000 in September, bringing the industry back to a level similar to the end of 2007. So far this year, continued weakness in this sector in Ontario was offset by gains in Quebec and Alberta. Compared with the peak reached in 2002, manufacturing employment in Canada is down 342,000.

In September, employment increased by 17,000 in """"other services."""" Employment also rose by 16,000 in transportation and warehousing, with gains mostly in trucking and rail transportation.

In September, employment increased by 15,000 in agriculture, with gains in Ontario, Alberta and Saskatchewan. According to the September Farm Survey, farmers expect a large harvest of field crops such as canola and wheat. Despite this latest employment gain, farm employment has declined by 6.0% (-21,000) over the past 12 months.

Employment in the construction industry continued to build on the strength observed over the past few years, up 14,000 in September. This brings total gains since the start of the year to 101,000 (+8.7%), the largest increase of any industry, with gains mostly in Ontario, British Columbia, Quebec and Alberta.

Employment in natural resources edged up 6,700 in September with nearly all of the gain in Alberta. September''s increase came from the oil and gas sector, which accounted for about half of the 0.7% increase in real gross domestic product in July.

There were employment declines in accommodation and food services (-16,000) and utilities (-9,300) in September. Despite these decreases, employment in both industries has shown an upward trend over the first nine months of the year.

Strong employment growth in Central Canada
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