Sept. 4 (Bloomberg) -- Canada recorded a surprise job gain in August, the first in four months, suggesting the country is emerging from its first recession since 1992. Employment rose by 27,100, Statistics Canada said. The jobless rate increased to 8.7 percent from July’s 8.6 percent, the highest since January 1998, as the labor force grew faster than employment. Economists surveyed by Bloomberg predicted a job loss of 15,000 and unemployment at 8.8 percent. “The number was well above consensus,” said Jack Spitz, managing director of foreign exchange at National Bank of Canada in Toronto. “It certainly suggests an improvement. It’s not necessarily a defining moment in Canadian job creation, but it certainly suggests a more bullish direction for the Canadian economy and by extension, the Canadian dollar.” The Canadian currency advanced 0.7 percent to C$1.0948 per U.S. dollar at 7:30 a.m. in Toronto, compared with C$1.1019 yesterday. One Canadian dollar purchases 91.34 U.S. cents. The unexpected gain may help Conservative Prime Minister Stephen Harper fend off attacks from opposition parties seeking to oust him over his handling of the economy. Parliament resumes Sept. 14, and Liberal Leader Michael Ignatieff said three days ago his party will no longer support the government. Part-Time Jobs The employment gain was led by 30,600 part-time jobs, while full-time positions declined by 3,500. Retailers and wholesalers hired 21,200 people and financial and real estate companies added another 17,500. The job report is also the last major piece of data due before the Bank of Canada’s Sept. 10 interest-rate decision. Governor Mark Carney said in July the economy started growing again this quarter, and committed to keeping his key lending rate at a record low 0.25 percent through next June if the inflation outlook doesn’t change. The jobless rate will likely keep rising even as the economy resumes growth, Carney said. “Our customers continue to be prudent,” Pat Finelli, chief marketing officer of Pizza Pizza Royalty Income Fund, said on an Aug. 7 earnings call. “Ontario and Alberta’s economies continue to suffer from job losses and low discretionary income.” U.S. Report The U.S. is slated to release its jobless report at 8:30 a.m. in Washington. Employers in the U.S. probably cut another 230,000 jobs in August and the jobless rate increased, underscoring threats to consumer spending, economists said. The better-than-expected Canada report doesn’t necessarily imply the U.S. will also surprise investors. “The U.S. numbers are independent of the Canadian numbers,” said Matthew Perrier, a director of foreign exchange at BMO Capital Markets in Toronto. The U.S. unemployment rate rose to 9.5 percent from 9.4 percent, according to the median of 77 estimates in a Bloomberg News survey. The projected drop in payrolls would be the smallest since August 2008, and follow a 247,000 July decline. Rising joblessness underscores Treasury Secretary Timothy Geithner’s judgment that it’s “too early” to start exiting from the unprecedented stimulus measures helping stabilize the economy. Slower Wage Growth Average hourly wages rose 3.3 percent in August from a year earlier, the slowest advance in more than two years, Statistics Canada said today. Manufacturing employment fell by another 17,300 in August, bringing the total loss over the prior 12 months to 231,300, or 12 percent, Statistics Canada said. Manufacturers have been among the hardest hit by the recession and the effects of a stronger currency. U.S. orders of lumber and automobiles have been slashed, and Bank of Canada Deputy Governor Timothy Lane said Aug. 25 that persistent strength in the country’s currency is an “important risk” to the economy. A stronger currency makes factory goods less competitive. Other companies made up for the factory job losses in August. Employment at private companies rose by 49,200, while government jobs fell 11,500 and self-employment declined by 10,600. Construction employment rose by 12,100 and professional and scientific services jobs rose 10,400.

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