XPost: can.general, can.politics, soc.culture.canada   
   From: abc@123.cl   
      
   Job creation in August bodes well for Canada   
      
      
   September 4, 2009   
      
      
   The last piece of the economic recovery puzzle is falling into place as   
   Canada unexpectedly created jobs in August and the bleeding in the U.S.   
   job market contiued to slow, figures showed Friday.   
      
   “There’s no more positive sign of confidence than when the private   
   sector begins to vote with its dollars by adding workers,” said Avery   
   Shenfeld, chief economist at CIBC World Markets.   
      
   The figures on the labour market -- historically late to emerge from   
   recession -- were the latest in a slew of signs, including improved   
   retail sales and June economic growth, that point to the end of the   
   recession in Canada in the current quarter. In the United States too,   
   figures this week showed the manufacturing sector crossing into   
   expansion territory, and housing continuing to improve.   
      
   The markets reacted positively to the news with Canada’s benchmark   
   stock index breaking above the 11,000 for the first time in a month.   
   The S&P/TSX composite index rose 95.98 points, or 0.9% to close at   
   11,017.47, while the Canadian dollar rose US1.38¢ to US92.02¢. The S&P   
   500 was up 13.16 points, or 1.3%, at 1,016.40.   
      
   The Canadian economy created 27,000 jobs in August, the first increase   
   since the surprise rise in April, Statistics Canada figures showed. The   
   improvement was driven by a 31,000 jump in part-time employment, which   
   was partly offset by a 3,500 decline in full-time jobs.   
      
   The decline in full-time employment reflected continued weak employment   
   conditions, but the strong rise in part-time jobs, particularly in the   
   private sector, was a positive signal for future job creation.   
      
   “Half a loaf, or in this case, half a job, is better than none, so an   
   increase in Canadian employment driven by part-time work is still an   
   encouraging signpost of an economic recovery now underway,” said Avery   
   Shenfeld, the chief economist at CIBC World Markets.   
      
   Despite the rise in jobs, an even larger number of people entered the   
   workforce to look for work in the month, pushing the unemployment rate   
   up by 0.1 percentage point to 8.7%.   
      
   The jobs creation in August bodes well for the economy. However, much   
   ground needs to be regained before conditions return to normal because   
   the number of employed is down by 387,000, or 2.3%, from the peak in   
   October 2008. Still, Canadian employment has not been as hard hit as in   
   the United States -- the epicentre of the global recession -- which has   
   lost 6.9 million jobs, or 3% of its workforce, since its recession   
   began in December 2007.   
      
   U.S. non-farm payrolls declined by 216,000 in August after a drop of   
   247,000 in July, Bureau of Labor Statistics figures showed Friday. This   
   pushed the unemployment rate up 0.3 percentage points to 9.7% -- the   
   highest rate since 1983. However, the decline was the smallest drop in   
   the past year and continued a steady trend of improvement since the   
   jaw-dropping drop of 741,000 jobs in January.   
      
   Stéfane Marion, the chief economist at National Bank Financial, said a   
   key detail of the report was that, despite job losses, wages rose for a   
   second straight month.   
      
   Hourly earnings rose 0.3% in August and were up 2.7% from the previous   
   year. The gain was partly helped by a rise in the minimum wage on July   
   24.   
      
   “This is crucial to keep the economy moving forward since there can be   
   no talk of a self-sustaining recovery without a pick-up in income,” Mr.   
   Marion said. “The first step to recovery for labour markets always   
   starts with an expanding wage bill.”   
      
   Canadian wages have remained relatively resilient throughout the   
   recession. Hourly earnings rose 0.6% in August after a drop of 0.8% in   
   July. Compared to a year earlier, hourly wage growth was at 3.3%, a   
   level well above the current pace of inflation despite sitting at a two   
   year low.   
      
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