Canada Added 46,400 Jobs in January; Unemployment Returns to 33-Year Low

[Purveyor]

Feb. 8 (Bloomberg) -- Canada added 46,400 jobs in January, more than four times as many as anticipated, indicating the full impact of a slowdown in the U.S., the country's main export market, has yet to spread through the Canadian economy.

The unemployment rate fell to 5.8 percent from 6 percent the previous month, returning to a 33-year low set in October, Statistics Canada said today from Ottawa. Economists forecast 10,000 new jobs and an unchanged unemployment rate, according to the median of 24 estimates in a Bloomberg survey.

Canadians are finding work even as the currency hovers near parity with the U.S. dollar, making the country's factory exports less competitive abroad. The Bank of Canada last month cut its economic growth forecast for this year because of weak U.S. demand for manufactured goods, and economists surveyed by Bloomberg say policy makers will lower borrowing costs at their next three meetings to boost consumer spending.

``It's partial evidence that Canada is holding its own against the U.S., but there are still a lot of risks,'' said Dustin Reid, a senior currency strategist at ABN Amro Inc. in Chicago. ``The high value of the Canadian dollar hasn't necessarily fed its way though the economy yet.''

---eoe---

http://www.bloomberg.com/apps/news?pid=20601082&sid=aOVuGDUalY_0&refer=canada

[midnight]

1. Maybe our own ecomomic policy guru's should look at what

Canada is not doing-ie. war, and outsourcing. Also don't they have that great science rating where real science is practiced?

[originalpckelly]

2. Their unemployment rate is 80 to 100 basis points higher than ours.

Everything is relative.

If 5.8% is good, then we must be gangbusters at 5.0%.

[LSK]

3. yet another example of universal healthcare ruining an economy

:sarcasm: :sarcasm: :sarcasm: :sarcasm: :sarcasm:

:grr: :grr: :grr:

[marmar]

4. Canada isn't immersed in subprime silliness or black-hole wars....

.... Their housing market is quite robust.

[JBoy]

5. Traditionally, Canada's economy mapped closely to US cycles

but over the last 10 years or so, trade with Asia has grown substantially. Economists here are unsure to what extent the slowdown in the US will impact Canada.

I think we're going to get hit harder in the months to come. Here in BC our forest industry is getting hammered by the US housing slowdown coupled with the rising dollar.

[Lisa]

9. and BC's film industry also took a pounding

The economist down the hall from me is still working out the numbers, but she says it's substantial. Some of the Hollywood studios that would normally be coming up here to shoot are going to Australia or Asia instead. Domestic productions are renting some of the studio space but even so, there's been a slowdown lately. Some of the tech people have apparently gone to find work in video game production or in building construction instead, because they figure they can't count on getting steady employment in film/TV for awhile.

[eridani]

6. From manufacturing.net

http://www.manufacturing.net/News-Canadas-Economy-Gains-46400-New-Jobs.aspx?menuid=36

Canada's economy bucked expectations by creating 46,400 new jobs in January, dropping the unemployment rate to 5.8 percent from a revised six percent in December and matching a 33-year low.

The jobs advance went counter to expectations that a stalling economy would push unemployment higher and slow down the impressive job creating record of the past few years.

Last month, the Bank of Canada revised its expectations for first-quarter economic growth to a rate of 0.6 percent.

But Statistics Canada said Friday that January got off to a fast start in terms of jobs creation, a major indicator of economic strength.

The economy produced jobs in a wide array of industries, with professional, scientific and technical services and construction leading the way.

As well, most new jobs were full-time and in the private sector.

The strong jobs data lends some credence to the view that the Canadian economy is faring better than its U.S. counterpart, said BMO economist Douglas Porter.

[New Dawn]

7. Any Canadian women here seeking a mail order husband? =P

[Lisa]

8. let me guess -- "some assembly required"? (n/t)