Tavia Grant, Globe and Mail - October 6, 2006

The Canadian economy created 16,200 jobs in September, the first growth in four months, as the manufacturing sector unexpectedly added to payrolls.The jobless rate, meantime, fell to 6.4 per cent from 6.5 per cent, Statistics Canada said Friday. The unemployment rate among adult women fell to a 30-year low."So much for fears that the wheels are falling off Canada's job market," said Marc Lévesque, chief strategist at TD Securities Inc., in a morning note. He still expects the Bank of Canada to "be on the sidelines for a while."The Canadian dollar strengthened after the report showed the labour market remains robust, with 210,000 new positions created this year. Most of those gains have been in full-time positions, even after an easing in full-time jobs in September. Wages were also higher, up 3 per cent from September of last year and well above the 2.1-per-cent inflation rate.
Among provinces, Alberta, Saskatchewan, Newfoundland and Labrador as well as British Columbia have had above-average employment growth this year. Alberta, which was little changed last month, accounts for a whopping 37.9 per cent of all workers added in Canada since the start of the year.Wage growth continues to be strong in Alberta's tight labour market, jumping 7.7 per cent from a year ago.In September, Saskatchewan added 7,000 workers, bringing total gains this year to 3.7 per cent, a rate of growth second only to Alberta, the report said.In September, an increase of 31,000 part-time workers outweighed a decline of 15,000 full-time jobs. This year, full-time employment has risen 1.4 per cent.The strongest growth in industries this year continues to come from natural resources, business, building and other support services, along with the health care and social assistance industries.In September, the struggling manufacturing sector surprisingly added 19,300 jobs. Still, so far this year, the sector has shed about 67,000 jobs, mostly in Central Canada, amid a strong currency and increased overseas competition.Economists said September's gains in the sector were a statistical anomaly and not a sign the industry is turning around."We just do not buy the fact that the manufacturing sector has suddenly become a vector of strength for the Canadian job market," said National Bank Financial economists Stéfane Marion & Eric Dubé.Last month, the natural resources, finance and insurance, and accommodation and food services sectors all created jobs.Construction, public administration and culture and recreation reduced their payrolls last month.Most of the employment increase since the start of the year has been among private sector employees, Statscan said.The share of the population that was employed, meantime, remained near record highs.Economists polled by Bloomberg News had expected 15,000 new jobs for the month with a jobless rate holding steady at 6.5 per cent.The Canadian dollar rose to 89.18 cents (U.S.) from 88.84 cents yesterday.