Canada's Jobless Rate Declined to 8.1% In October, Lowest Level in Eight Years
OTTAWA -- Canada's unemployment rate declined in October to its lowest level in eight years, dropping to 8.1% from 8.3% in September, Statistics Canada, a government agency, said.</br></br>The stronger-than-expected October job data eased fears that Canada, the largest foreign customer for U.S. goods, was heading toward an early recession. Many analysts had predicted a rise in the October jobless rate.</br></br>Alister Smith, deputy chief economist at Canadian Imperial Bank of Commerce, said the October report was "really good," showing job strength across industries and regions. He said the job strength supports the bank's view that the Canadian economy will grow at a rate of about 3% through 1998 before slowing to a pace of about 2% in 1999.</br></br>Wojciech Szadurski, Bank of Montreal economist, said the latest job gains "significantly reduce concern about an imminent recession in Canada." These concerns have been heightened by the economic turmoil in Asia and other regions.</br></br>Full-time jobs showed a big gain in October, rising 83,900, or 0.7%, from September. Manufacturing jobs, after declining for three consecutive months, rose 42,700, or 2%, from the previous month. Statistics Canada's latest survey of manufacturers indicated they were more positive about new orders and were planning to increase production in the next three months.