UPDATE 1-Canada Sept. unemployment rate steady at 7.2 pct
OTTAWA, Oct 5 (Reuters) - Canada's unemployment rate
remained steady at 7.2 percent in September as jobs increased
for the first time in four months but the figures do not fully
reflect the impact the Sept. 11 attacks on the United States,
making the report a "one-month wonder," analysts said on
Friday.
The report, which could lend some relief to jittery
consumer confidence, also takes the pressure of the Bank of
Canada which can now wait until its Oct. 23 schedule date to
ease interest rates.
Statistics Canada said employment rose by 19,600 jobs, after
three consecutive months of decline that totaled 35,000
Analysts in a Reuters survey had forecast, on average, the
jobless rate to inch up to 7.3 percent in September and a loss
of 8,700 jobs.
Statscan said full-time employment had risen 52,000 in
September, adding to the gain of 41,300 in August. Part-time
employment fell by 32,000.
"It's a big surprise, a big increase in jobs, and it's
going to be the last one for a while I can tell you. It's a
one-month wonder," Marc Levesque, senior economist at
Toronto-Dominion Bank, said. "I doubt very much the Canadian
job market is going to hold up nearly as well as these numbers
suggest."
Levesque said September's report showed an economy that was
stalled even before Sept. 11.
Statscan said the attacks on New York and Washington took
place during the labor force survey's reference week, when most
of the questions were put to respondents. No questions about
employment were asked during the weeks starting Sept. 18 and
Sept. 25.
"As a result, most of the impact of the attacks on
employment and unemployment is not reflected in the September
estimates," Statscan said. Figures for October will be
released on Nov. 2.
Economists expect the October jobs report to be grim since
layoff announcements have increased following the attacks.
Major firms such as Air Canada <AC.TO>, Nortel Networks Corp.
<NT.N> <NT.TO> and Bombardier Inc. <BBDa.TO> have cut thousands
of jobs in recent weeks.
Statscan said the impact of the attacks on the United
States was seen in days lost by employees. During the week of
Sept. 11, more than 136,000 people missed part of the work
week, 83,000 more than average, particularly in banking and air
transportation.
Mark Chandler, senior economist at Goldman Sachs, noted
that most of the gains in September came in the services
sector, which could be at risk if consumer spending slows since
the attacks.
The monthly labor force survey is calculated from
responses gathered from questions put to 52,000 "representative
households" across the country, covering 100,000 people,
Statscan officials said.
($1=$1.57 Canadian)
((Reuters Toronto Bureau (416) 941-8105 email:
toronto.newsroom@reuters.com))
REUTERS
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