MNI DATA IMPACT: Canada Sept Jobs +53,700 Vs. Forecast +5,000>

By Greg Quinn and Anahita Alinejad

     Ottawa (MNI) - Canadian job creation exceeded forecasts for a 

second month in September, with a shift to higher-paying full-time 

positions and faster wage gains further buffering the nation against the 

global tide of trade tensions and interest-rate cuts. 

     Employment rose by 53,700 compared with the MNI economist median 

for 5,000 positions. The net gain included 70,000 new full-time jobs and 

a 16,300 decline in part-time work, Statistics Canada said from Ottawa 

on Friday.

     The unemployment rate declined to 5.5% in September from 5.7% in 

August, bringing it close to May's record low of 5.4%. The MNI economist 

median was for the jobless rate to remain unchanged.

     The improvement is defying expectations the economy would fade in 

the third quarter on slower energy production and weaker consumer 

spending. The September gain means employment growth in the 

July-to-September period came in at 0.6%, close to the 0.7% gain in the 

second quarter. 

     The Bank of Canada has resisted matching U.S. and European rate 

cuts this year, arguing the economy has stayed close to full output. 

Today's report also showed wage inflation pressure that may keep 

consumer price gains close to policy makers' 2% target. Hourly wage 

gains accelerated to 4.3% in September from a year earlier from the 

August pace of 3.7%. 

     The year-over-year gain in hours worked quickened to 1.3% in 

September from 1.2% in August and 0.7% in July. The figure can be 

a benchmark of labor's contribution to economic growth. 

     One potential weakness is job gains led by the "self-employed" 

category, which climbed 42,100 in September. Private-sector employment 

declined by 21,000 and public-sector positions advanced 32,600. 

     The September job gain follows the 81,100 job increase for August, 

which beat the MNI economist median of 15,000. 

--MNI Ottawa Bureau; +1-613-314-9647; greg.quinn@marketnews.com 

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