The Canadian economy gained a surprising 79,000 jobs in November, with the unemployment rate easing 0.1 percentage points to 8.5%, Statistics Canada reported Friday.
"Almost all the employment growth in November was attributable to the service sector (up 73,000), especially educational services," the federal agency said.
"With November's increase, employment in the service sector is back at its October 2008 level, while employment in the goods sector remained well below (down 324,000) where it was at that time."
Most economists forecast 15,000 new jobs would be added during the month. The November number followed a surprise loss of 43,200 positions in October, which was the first decline in three months, and sent the jobless rate to 8.6% in October.
Millan Mulraine, economics strategist at TD Securities, said "even though the Canadian economic recession is likely over, we do not believe that this will mark the beginning of a significant upturn in the Canadian labour market, as we expect to see further ebbs and flows in employment in the coming months."
Statistics Canada said full-time employment increased by 39,000 in November, the third consecutive monthly increase. Part-time employment rose by 40,000, following two months of declines. Most of the new jobs were in the service sector, up 73,000, led by educational services.
Private-sector employment was up 57,000 and public-sector jobs rose by 54,000, the agency said. Meanwhile, the number of self-employed workers declined by 32,000.
"In recent months, the number of employees in the public sector, as well as the number of self-employed, has trended up, while in the private sector, the trend has been relatively flat," it said.
"Employment growth was widespread across most provinces with the largest gains in Ontario, Quebec and Alberta."
Benefiting the most from the job gains were women aged 25 to 54, up 51,000, and men aged 55 and over, up 17,000.
Meanwhile, U.S. employment numbers are also due Friday. Economists expect a loss of 120,000 jobs in November, compared to 190,000 lost positions a month earlier. Expectations are that the unemployment rate will remain at 10.2%.
