(Updates with bond trading in fifth paragraph, minister’s comment about skills shortage in last two paragraphs.)
July 8 (Bloomberg) -- Canada added almost twice as many jobs as economists forecast in June, led by part-time staff and transportation workers, keeping the country’s unemployment rate at a 2-1/2 year low.
Employment rose by 28,400, Statistics Canada said today in Ottawa, exceeding the 15,000 median estimate in a Bloomberg News economist survey. The jobless rate was unchanged at 7.4 percent, the lowest since January 2009.
Canada’s job recovery since the global recession has been faster than other Group of Seven countries as companies expand to fill commodity orders. Bank of Canada Governor Mark Carney has said economic growth may be slowing on disruptions in automobile production and the drag on exports of a strong Canadian dollar.
The jobs performance is “much better than what is going on in most countries,” said Mark Chandler, head of Canadian currency and rates strategy at Royal Bank of Canada’s RBC Capital Markets in Toronto. “There are very few holes you can poke in the jobs market.”
The Canadian dollar reversed earlier gains after the U.S. reported weaker-than-forecast job figures at 8:30 a.m. New York time. The Canadian dollar fell 0.4 percent to 96.26 cents per U.S. dollar at 9:33 a.m. in Toronto, compared with 95.87 yesterday. One Canadian dollar buys $1.0391. The yield on the Canadian government two-year bond fell six basis points to 1.52 percent.
The U.S. Labor Department said payrolls rose 18,000 in June, less than the gain in Canada, a country with a 10th the population. The U.S. jobless rate rose in June to 9.2 percent from 9.1 percent, while economists predicted it would be unchanged.
The American unemployment rate peaked at 10.1 percent in October 2009, while Canadian unemployment has fallen from a peak of 8.7 percent in August 2009.
Canada’s unemployment rate remained unchanged in June as the labor force grew by 42,000.
Part-time employment rose by 21,100, and full-time by 7,300 positions, Statistics Canada said. Employment rose the most in transportation and warehousing with 14,500 new jobs and financial services with 11,300.
Self-employment decreased by 44,200 in June, while paid employment advanced by 72,600, Statistics Canada said. Public- sector employment rose by 50,700 in June and the number of positions at private companies increased 21,900.
Average hourly wages rose 2 percent in June from a year ago, matching the previous month’s pace.
Still, some Canadian companies are struggling to find skilled workers, Human Resources Minister Diane Finley said July 6.
“While there are people who are unemployed, there are still jobs going begging,” she told reporters in Ottawa. “There is a degree of skills mismatch across the country.”
--With assistance from Ilan Kolet in Ottawa. Editors: Theophilos Argitis, David Scanlan
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