Canada’s Economy Unexpectedly Adds Jobs in August on Services

Canada’s economy unexpectedly added jobs in August, mostly full-time work in services such as education and health care, in another sign of sustained momentum in a labor market that has defied the oil price shock.

Canadian employment grew by 12,000 during the month, bringing to 193,300 the number of new jobs over the past 12 months, Statistics Canada said Friday in Ottawa. The unemployment rate rose to 7 percent from 6.8 percent as more Canadians entered the labor force. Economists surveyed by Bloomberg had predicted a drop of 5,000 jobs in August.

The employment gains are defying gross domestic product data that show Canada’s economy contracted in the first two quarters of the year amid a plunge in oil prices that’s prompting businesses to scale back investment.

Services-related industries are doing much of the heavy lifting, adding 17,200 jobs in August to offset job losses for goods producers such as factories. Over the past 12 months, the country has added 201,600 service jobs, while losing 8,300 goods producing jobs.

The composition of new jobs is also improving. The nation created 54,400 full time jobs in August, offsetting a drop of 42,400 part-time jobs. Over the past 12 months, Canada added 317,900 new full-time workers, offsetting a 124,500 drop in part-time work.

The total number of actual hours worked jumped 0.8 percent in August from the month before, the most since November 2010.