By Paul Vieira
OTTAWA--Revised employment data on Friday showed Canada added over 40,000 jobs in July, more than double market expectations, on gains in part-time employment. The jobless rate also dropped.
Canada's statistics agency said 41,700 jobs were added in July, well above the original estimate issued a week ago of a meager 200 jobs. The unemployment rate fell to 7% from 7.1% in June.
The market consensus heading into Friday's release of the revised data was for a 20,000 gain in employment and an unemployment rate of 7.1%, according to economists at Royal Bank of Canada.
In June, the economy shed 9,400 net positions.
Statistics Canada took the unusual step of issuing a restatement of its July employment report, originally issued last Friday, and expunging material posted on its website after discovering an error during the processing of the data. The data agency said it is conducting a review of what happened and plans to release its findings at a later date.
The biggest change between the revised data and the original report on August 8 is that Canada didn't lose as many full-time jobs as first estimated. The new report indicated Canada shed 18,100 full-time paying positions in July instead of the steep decline of 59,700 first reported. Part-time job growth remained largely unchanged from the original report at a gain of 59,900.
The monthly jobs report is arguably the most closely watched economic indicator in Canada, analysts say, because it offers a broad, timely measure on the health of the Canadian economy. Foreign-exchange and fixed-income traders tend to react immediately to the Canadian jobs report.
The Canadian dollar rallied after the revised numbers were released at 8:30 a.m. EDT, with the U.S. dollar at C$1.0875 versus C$1.0897 prior to the release. Last Friday, the Canadian dollar weakened and Canadian bond prices rose after the original report. The currency rebounded partly this week on anticipation of a strong upward revision in jobs.
Even with the revisions, the underlying trend in Canada job creation remains tepid. On a year-over-year basis, Canada created a net 156,800 jobs, or an average 13,100 a month, for a rise of 0.9%. On a three- and six-month basis, Canada added an average of 19,400 and 10,900 jobs per month, respectively.
Canadian Finance Minister Joe Oliver said this week that weakness in the global economy, highlighted by "insipid" results from Europe, is weighing on job creation in the country, as exports have yet to surge and business investment remains cautious.
Employment gains in July were led by the education sector, 46,100, and the culture and recreation sector, 17,100. Construction led decliners with a 38,800 drop, followed by health care, down 25,800.
The participation rate, which is the number of employed and the unemployed who are actively looking for work as a share of the population, was 66.1%, or unchanged from June. The labor force grew in July by 24,700. Hourly wages in July rose 2.1% from a year ago.
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(END) Dow Jones Newswires
August 15, 2014 09:39 ET (13:39 GMT)
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