Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 842 Sun. October 08, 2006  
   
Business


Unemployment in Canada dips in Sept


The Canadian unemployment rate dipped slightly to 6.4 percent in September as 16,000 new jobs were created, Statistics Canada said Friday.

The report marked the first gain in employment after three months of job declines, the report said.

The report was slightly better than expected by economists, who had on average predicted the jobless rate to hold steady from the August rate of 6.5 percent.

The gains came after three months in which 25,000 jobs were lost, following an unusual gain of 96,000 in May.

But the report also showed hours worked fell 0.6 percent, a sign that economic growth may be sluggish.

Additionally, all the gains in September came from part-time employment. An increase of 31,000 in part-time jobs was offset by a decline of 15,000 full-time jobs.

But since the beginning of the year, overall employment has increased by 210,000, the report said.

Analysts said the report is likely to keep the Bank of Canada, which has kept its base rate steady at 4.25 percent after a series of hikes, on hold for the time being.

"An end to the string of job losses is a clear relief. Still, there is no compelling reason for the Bank of Canada to change its on-hold pattern," said Douglas Porter, economist at BMO Nesbitt Burns, in a research note.