(Corrects 3rd paragraph and bullet to say jobless rate is the
lowest since June, not March)
* Economy adds 59,300 net new jobs vs forecast of 10,000
* Jobless rate drops to 7.2 pct, lowest since June
* Wage growth slows for permanent employees
* Analysts say report unequivocally strong
* Markets resume bets on interest rate hike in 2013
By Louise Egan
OTTAWA, Dec 7 Canada's job market bounced back
in November after a sluggish October, the economy creating the
most jobs in eight months, according to data that offered hope
of stronger economic growth in the fourth quarter.
The economy added 59,300 net new jobs in the month, mostly
full-time positions and in the private sector, Statistics Canada
said on Friday in its Labour Force Survey.
The jobless rate fell to 7.2 percent, the lowest level since
June, from 7.4 percent.
Market operators surveyed by Reuters had forecast, on
average, 10,000 new jobs in November and a steady 7.4 percent
jobless rate amid signs the economy was struggling to gain
"Just as the conventional wisdom pretty much everywhere was
that the Canadian economy was practically grinding to a halt, we
get handed one of the strongest job numbers of the year," said
Doug Porter, deputy chief economist at BMO Capital Markets.
"It's a solid report, from head to toe. At least upon first
glance, I don't see any major warts in the data," he added.
The Canadian dollar jumped to a one-month high
after the data C$0.9878 versus its U.S. counterpart, or $1.0124
, compared with C$0.9925, or $1.0076, immediately before the
releases. It was Canadian dollar's strongest level since Nov. 7.
The average monthly employment gains were 20,700 over the
past six months, a time frame that reflects a more realistic
trend as monthly figures tend to be erratic.
Canada's economy grew at a tepid 0.6 percent pace,
annualized, in the third quarter. While the fourth quarter is
likely to show some momentum, growth may not be strong enough to
force the Bank of Canada to raise interest rates.
The central bank has held its key rate at 1 percent for over
two years but has been signaling plans to hike rates since
April, the only central bank in the Group of Seven wealthy
nations to have that hawkish tilt.
Overnight index swaps, which trade based on expectations for
the central bank's key policy rate, showed that traders resumed
placing small bets on a rate hike in late 2013 after the
But economists say the bank is in data-watching mode before
deciding when to make a move.
"Right now I think the bank has mostly just focused on the
external events. They'll need to see what happens with the U.S.
fiscal situation before they want to provide any updated views,"
said Mazen Issa, strategist at TD Securities.
The November hiring was concentrated in the services sector,
which created 65,700 new positions and was led by accommodation
and food services, retail and wholesale trade, and professional,
scientific and technical services.
The goods-producing sector lost 6,200 jobs, with the number
of workers in manufacturing declining by 19,600.
Year-over-year wage growth fell sharply to 2.2 percent in
November from 3.9 percent in October, based on the average
hourly wage of permanent employees.
The economy created only 1,800 jobs in October and a hefty
52,100 in September, although secondary data for that month
showed a decline in non-farm payrolls.
(Additional reporting by Alex Paterson, Allison Martell, Claire
Sibonney and Cameron French; Editing by Grant McCool)