Trial now
STIR

Effective Fed Funds Rate: Bounce Back

JPY

USDJPY test MNI tech support

BONDS

US and Germany at session highs

EQUITIES

Stock Markets Drifting Ahead of Opening Bell

US TSY OPTIONS

Post-Open Downside Insurance

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$,MAUDR$]