| Note: Only available to Wall Street Journal Online subscribers, so I give you the whole article. After slipping into reverse in August, the Canadian job-creation machine revved back into overdrive in September, creating more than twice as many jobs as expected and in the process driving bond yields higher and cementing expectations for two more rate increases this year. The Canadian dollar jumped and bond yields surged Friday after Statistics Canada reported that Canada created 43,200 jobs in September, compared with the expected 15,000, and that the unemployment rate dropped to 7.1%. Analysts had expected the rate to remain steady at the 7.2% recorded in August, when employment declined by 7,000. Analysts saw the report as further confirmation of the underlying strength and resilience of the Canadian economy, even as the Canadian dollar's rise is likely to start to crimp exports. "The domestic side of the economy is still fairly strong, and that's carrying the day whether you look at consumer spending, investment activity or indeed government spending," said Craig Wright, chief economist at RBC Financial Group. The strength in the key jobs data is reinforcing expectations the Bank of Canada will continue the monetary tightening it began in September. |