According to the latest September 2010 Labour Force Survey from Statistics Canada there was little change in employment in September, as full-time gains were offset by part-time losses. The unemployment rate edged down 0.1 percentage points to 8.0%, as fewer people, particularly youth, participated in the labour market.

Since September 2009, overall employment has risen by 349,000 (+2.1%).
In September, the part-time employment decline of 44,000 was mostly offset by an increase of 37,000 in full time. Over the past year, however, part-time employment has grown by 4.6% (+146,000), a faster pace than the 1.5% growth in full time (+203,000).

Employment among 15- to 24-year-olds declined in September. For workers aged 25 to 54, increases among men were offset by declines among women. Both men and women aged 55 and over posted employment increases.

Employment in professional, scientific and technical services declined by 32,000 (-2.4%). Despite this drop, employment in this industry has grown by 86,000, or 7.2%, over the past 12 months, one of the highest rates of growth among all major industries.

The number of workers in transportation and warehousing rose by 15,000 in September, bringing total gains to 30,000 (+3.8%) over the past 12 months.

There was little change in manufacturing employment, continuing a stable trend that emerged about a year ago.

Although construction was little changed in September, employment in this industry has been on an upward trend for over a year, with gains totalling 68,000, or 5.8%, over the past 12 months. Employment growth in construction has been among the fastest of all the major industry groups over the past year.

There was virtually no change in the number of public or private sector employees in September, while the number of self-employed edged down. During the past 12 months, growth in the public sector (+3.7% or +128,000) has outpaced that in the private sector (+2.4% or +261,000). Over the same period, the number of self-employed workers declined by 1.5% (-40,000).

A string of weaker-than-expected economic data has led markets to place very low odds on rate hike this month from the Bank of Canada.

Canada’s economy unexpectedly lost 6,600 jobs in September, largely because a steep drop in part-time jobs outweighed gains in full-time positions. Market operators had expected a gain of 10,000 jobs. Statistics Canada said the unemployment rate edged down to 8.0 percent from 8.1 percent in August.

Still, economists suggested the headline jobs data masked some underlying strength. Most important, full-time jobs gained for a second straight month, by a robust 37,100, compared to a 43,700 drop in part-time employment. Scotia Capital said this likely represented a conversion of part-time work to full-time work, which is a “mild positive” as it expands hours worked. Plus, full-time jobs are generally better paying and more stable.

Meanwhile, Canadian Finance Minister Jim Flaherty claimed to be encouraged by the country’s September jobs data.

“I’m not surprised. We’re seeing moderate growth in Canada. I’m encouraged by the growth in full-time jobs, the unemployment rate has dropped.

Canadians ought to expect we will see continued moderate growth. We’re in much better shape than most other industrialized countries.”

Over the course of 2010, the rate of part-time job creation has outpaced full-time and, as a consequence, the number of hours worked remains below the peak level hit prior to the economic downturn, said Dawn Desjardins, assistant chief economist at Royal Bank of Canada.

“At the same time, debt levels have been rising with the household debt-to-income ratio hitting a new high early this year,” she said. “The prospect of more moderate growth going forward suggests that labour market conditions will improve more slowly in the months ahead and that the unemployment rate will only gradually drift lower.”

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Canada’s cooling housing market continues to put the brakes to residential building plans, although the slowing trend in no way signals a U.S.-style housing free fall, the Conference Board said Wednesday.

The 2.4 per cent decline, to a monthly rate of $3.5 billion, follows similar data showing housing starts and resale activity in Canada declining for months now, along with reports arguing that Canada’s housing market is a bubble waiting to burst.

Not so, the Conference Board of Canada argued in a report Wednesday. “The housing market has lost its lustre. No doubt about it,” said Mario Lefebvre, the centre’s director for municipal studies.

“However, this will not lead to a free fall for Canada’s housing market. This country will not experience home-price declines to the tune of what we have witnessed in the United States over the past few years.”

Alberta’s declines came entirely in the residential sector, Statistics Canada reported Thursday. The province’s 20.6-per-cent decline in housing permits in August was second only to the drop in P.E.I., at 39.6 per cent. Intentions were down 24 per cent in Edmonton and 27 per cent in Calgary.

Across Alberta, cities issued permits for $851 million worth of construction projects in August, an 11.1-percent decline from July.

“The decline in Alberta was due entirely to fewer residential permits, which plunged 20.6 per cent to $481 million,” said ATB Financial economist Dan Sumner in a statement.

“August’s decline brought residential permits to their lowest since June 2009. Prior to the fall, residential permits had hovered just above the $600 million mark for nearly a year.”

He added that while residential building permits in Alberta had previously “showed strong resilience” this year, as builders continued to plan construction projects, that turned around in August.

“Whenever builders want to begin a project they must first take out a building permit. Hence these figures provide a forward-looking indication of how many and what kind of construction projects will commence in the coming months.”

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