Canadian employment rose a better-than-expected 60,900 in September, sending a signal that the labour market, while cooling is not enduring a significant slowdown, according to BMO Economics. BMO also released today the results of a new survey of Canadian business owners showing optimism for 2012.
"Once again, the Canadian economy is showing resilience, with job growth has averaging 28,300 per month so far this year. The solid employment report is good news in a period of economic uncertainty, and will probably clip any expectations of Bank of Canada rate cuts this year," said Robert Kavcic, Economist, BMO Capital Markets.
The jobless rate in September sits at 7.1 per cent, with full time jobs up 63,800 while private-sector employment dropped 14,900. Private-sector job growth is running at a firm 2.2 per cent year over year.
The BMO poll, conducted by Leger Marketing, revealed that 87 per cent of business owners believe next year will be the same or better for their companies. Furthermore, nearly 40 per cent plan to hire more employees in 2012.
"The survey results support what we are hearing from business owners-they are looking to invest in their companies, and they recognize that well-trained, productive, and innovative employees are a catalyst for business growth," said Cathy Pin, Vice-President, BMO Commercial Banking. "Heading into the new year, entrepreneurs are more optimistic, and are looking for clear advice and practical solutions on how to upgrade their infrastructure, retool their business processes, and how they can invest in further developing their talent."
Canadian Employment Report - September:
A few industries saw employment snap back after soft spells during the summer, but the gains were not broad based. Education jumped 38,400 thanks to a summertime glitch in seasonal factors, while resources increased 17,000, ending a four-month losing streak. Manufacturing employment fell 23,500 after three-straight monthly gains. Other notable gainers were professional services, up 35,600, accommodation and food increasing by 30,700 and construction up 11,600.
British Columbia led the pack with a near record 31,600 increase amid broad-based job growth. Ontario added a solid 12,700 despite a slip in manufacturing, while Alberta also remained strong with an 8,700 increase. Job growth in Alberta continues to outpace other provinces, with employment up for five straight months and 4.8 per cent in the past year. Private-sector job growth in the province was up 8.8 per cent year over in September, the strongest growth since 1981 and even outpacing growth seen at the height of the energy boom in 2007.
The survey by Leger Marketing, was conducted on the phone between August 30th and September 16th, 2011, with a sample of 509 small, medium and large l business owners. A probability sample of the same size would yield a margin of error of +/-4.4 per cent, 19 times out of 20.