WRAPUP 1-Data shows some cracks in solid Canadian economy

By Louise Egan

OTTAWA, May 9 (Reuters) - Reports on Canada's employment and trade performance on Friday appeared to showcase the economy's resilience to the U.S. slowdown, but some less encouraging trends emerged in the details.

Statistics Canada said the economy created 19,200 jobs in April, more than the 10,000 forecast, while the unemployment rate ticked up to 6.1 percent from 6.0 percent in March as more people entered the work force.

The trade surplus in March widened more than expected to C$5.53 billion ($5.48 billion), its highest level since May 2007, thanks to surging prices for oil and natural gas exports, the federal agency said in a separate report.

The news did not change market expectations of a quarter-point interest rate cut by the Bank of Canada on June 10. The Canadian dollar initially shot higher after the jobs report but then gave back more than half its gains as traders read between the lines.

Taken broadly, the data confirms Canada's economy remains relatively robust as the United States teeters on the brink of recession. But economists and labor groups warned the headline numbers mask poorer quality jobs and declining export volumes.

"When you read into the numbers and you look at the sectoral breakdown it's not as strong as perhaps what the headline would indicate, in the sense that there was some increase in jobs in the service areas as well as education," said George Davis, chief technical strategist at RBC Capital Markets, referring to the jobs report.

All the gains in April were in full-time employment. However, most of those new workers were self-employed. These are often on short-term contracts with lower compensation. In addition, the private sector shed workers while the public sector expanded payrolls, particularly in education which is not normally a good barometer of economic activity.

The Canadian Labour Congress called the new type of jobs precarious, insecure and low-paying.