* Second consecutive month of modest job gains
* Jobless rate remains at nearly five-year low
* Data overshadowed by large U.S. job gains
By David Ljunggren
OTTAWA, Nov 8 Canada added a relatively modest
13,200 jobs in October - all of them full-time - and the
unemployment rate stayed at a nearly five-year low of 6.9
percent, Statistics Canada said on Friday.
The job growth almost matched analysts' expectations for
13,500 new positions and follows the 11,900 jobs created in
The figures reflect how little short-term pressure the Bank
of Canada is under to raise rates. Last month the central bank,
fretting about the soft economy and sluggish exports, abandoned
18 months of warnings that rates would eventually have to rise.
The bank's softer stance prompted primary dealers to
forecast the key overnight rate would stay unchanged until the
first half of 2015. The bank has kept the rate at a near record
low of 1 percent since September 2010.
"What will eventually move the Bank of Canada will be data
on exports, international trade," said Carlos Leitao, chief
economist at Laurentian Bank of Canada.
"That's the key element in the Canadian outlook, and until
and unless we see exports pick up significantly, the Bank of
Canada will not change."
The Canadian data were overshadowed by figures from the
United States, which showed employers there added a much
greater-than-expected 204,000 new jobs to their payrolls last
Canada sends 75 percent of its exports to the United States
and is hugely reliant on its southern neighbor.
The Canadian dollar weakened to a session low of
C$1.0487 to the U.S. dollar, softer than just before the jobs
data was released and weaker than Thursday's session close at
C$1.0461, or 95.59 U.S. cents.
Doug Porter, chief economist at BMO Capital Markets, said
the U.S. figures meant the Bank of Canada might lift rates
sooner than expected.
"I think more people are going to be talking about rate
hikes in 2014 than they were before, at least for Canada," he
The average monthly job growth over the last six months,
seen as a more reliable gauge of the trend in the job market,
was 23,300, compared with 23,100 in the pervious six-month
period. May's outsized 95,000 new jobs will not be part of the
six-month average when November's data are released.
In October, Canada added 16,000 full-time positions and shed
2,700 part-time jobs. Since October 2012, the economy has added
213,800 jobs, an increase of 1.2 percent.
Employment in the struggling manufacturing sector fell by
6,400 jobs in October. Employment in business, building and
other support services dropped by 32,600.
The overall participation rate, which includes those working
or actively looking for work, remained at 66.4 percent, the
lowest since the 66.3 percent recorded in February 2002.