MNI DATA IMPACT: Canada Aug Jobs +81,100 Vs. Forecast +15,000>

By Greg Quinn and Anahita Alinejad

     Ottawa (MNI) - Canadian job creation shattered economist 

forecasts last month as companies added part-time and service 

workers, bolstering the central bank's argument a resilient domestic 

economy can resist global trade shocks. 

     The 81,100 job gain for August beat the MNI economist median 

for a gain of 15,000, more than reversing losses in the prior two 

months. The unemployment rate remained at 5.7%, close to May's record 

low of 5.4%, as more people joined the labor force.

     The job market is adding to a picture of an economy doing better 

than expected following a slowdown earlier this year linked to falling 

energy production. Gross domestic product grew 3.7% in the second 

quarter and inflation has held at the Bank of Canada's 2% target, a big 

reason policy makers held their key lending rate at 1.75% Wednesday. 

That decision bucked a global shift among central banks signaling new 

stimulus to counter risks from a U.S.-China trade war. 

     Canadian wages are also strong enough now to signal they may add to 

the inflation in consumer prices. Hourly wages rose 3.7% in August from 

a year ago, above the 3% pace the BOC has said could be expected in such 

a strong job market.

     Some of the details did point to a slowdown later in the year that 

the BOC is expecting. Most of the gains were in lower-paying part-time 

and service jobs. Part-time positions rose 57,200 in August, ahead of 

the full-time increase of 23,800. Service industries like restuarants 

added 73,300 staff and goods-producing companies hired a net 7,800 

people.

     The year-over-year gain in hours worked quickened to 1.2% in 

August from 0.7% in July. That figure can be a benchmark of labor's 

contribution to economic growth.  

--MNI Ottawa Bureau; tel: +1 613-314-9647; email: 

greg.quinn@marketnews.com 

     [TOPICS: M$C$$$,MACDS$,MAUDR$]