(Adds market reaction, analyst comment)
By David Ljunggren
OTTAWA, Jan 8 (Reuters) - Canada added more jobs than
expected in December, partly making up for heavy losses the
previous month, while the unemployment rate held at 7.1 percent,
welcome news for an economy hit by low oil prices.
Statistics Canada said on Friday the economy created 22,800
jobs in December, far more than the market forecast of a 10,000
gain, but in sign of possible underlying weakness analysts noted
all the gains were in the part-time sector.
Derek Burleton, deputy chief economist at Toronto-Dominion
bank, said the headline figure was a relief amid market gloom
about slumping commodity prices and a stuttering economy.
"At the margin, it's reassuring. It's not a robust
employment report but given all the negativity it might help to
sooth some of the recent fears," he said.
The Canadian dollar initially held its own against a broadly
stronger U.S. dollar, helped by solid jobs data in both nations.
It later weakened to C$1.4132, or 70.76 U.S. cents, down from
the official close of C$1.4097, or 70.94 U.S. cents.
The economy created 29,200 part-time jobs and lost 6,400
full-time positions in December. The number of employees dropped
by 17,500 while the ranks of the self-employed grew by 40,300
positions.
"The details are not that great. All of the gain was in part
time and all was in self employment, so not a great mix. We'll
take any jobs we can get at this point, but it could be better,"
said Sal Guatieri, senior economist at BMO Capital Markets.
Bank of Canada Governor Stephen Poloz on Thursday said it
could take the economy from three to five years to adjust to
lower commodity prices.
The oil price crash has slammed the western energy-producing
province of Alberta, which lost 3,900 jobs in December. The
jobless rate in the province is now 7.0 percent compared to 4.7
percent in December 2014.
Further east, the populous provinces of Ontario and Quebec
posted gains of 34,900 and 12,700 positions respectively.
For 2015, employment gains totaled 158,100, or 0.9 percent,
slightly above the 0.7 percent year-on-year growth rate seen in
both 2013 and 2014.
The six-month moving average for employment growth was
10,500, up from 10,400 in November.
Separately, Statscan said the value of Canadian building
permits issued in November fell 19.6 percent on widespread
declines in Alberta, which had seen a boom in October.
Graphic - Canada jobs, unemployment http://link.reuters.com/fax39t
Graphic - Full-time vs. part-time http://link.reuters.com/pev29v
Graphic - Temporary vs. permanent http://link.reuters.com/xuf98v
Graphic - Canada economic dashboard http://graphics.thomsonreuters.com/15/sc-canada/index.html
Graphic - Canada building permits http://link.reuters.com/det73t
Graphic - Canada economic dashboard http://graphics.thomsonreuters.com/15/sc-canada/index.html
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