PREVIEW-UPDATE 1-Canada seen adding 21,000 jobs in February

 (Updates with final median forecast)
 WHAT: Canadian February Labour Force Survey
 WHEN: Friday, March 11 at 7 a.m. (1200 GMT)
 (ECONCA: Quote, Profile, Research)
                Feb      F'cast range    prior (Jan)  
Jobs gain/loss     +21K     -11K to +50K    +69.2K  
Unemployment rate   7.7 pct  7.6-7.8 pct     7.8 pct
 For individual forecasts see: [ECI/CA]
 After stronger-than-expected job creation in January,
recouping all the job lost in the recession, analysts expect
hiring to slow to a more modest pace in February, lowering the
unemployment rate.
 Still, surprisingly strong economic growth in late 2010
suggests momentum will spill over into the first quarter of
this year and heat up the job market. Analysts see
first-quarter growth topping 3.5 percent annualized after 3.3
percent jump in the fourth quarter.
 Sectors: The goods-producing sectors are expected to create
more positions than the services industries, as has been the
trend in the previous 12 months. Some services sectors like
public administration and business support services are seen
easing after a big jump in January, offsetting gains in
manufacturing and resource industries.
 Job quality: Market players look for evidence the economy
is generating full-time jobs in the private sector, rather than
part-time positions in government or self employment.
 Although the number of positions added to payrolls has
recovered to pre-recession levels, the total number of hours
worked has lagged. This means less of a boost to Canadians'
incomes than the headline numbers suggest.
 Wages: Markets are paying closer attention to inflation
indicators as the central bank edges closer to an expected rate
hike in coming months. So far, hourly wages of permanent
employees -- the best indicator of wage inflation -- have not
moved significantly and stood still at a 2.3 percent annual
rate in January. Any sign of a jump in wages could add marginal
pressure on the Bank of Canada to tighten its policy rate
 Stronger-than-forecast jobs growth could cause the Canadian
dollar to strengthen and bond prices would fall as investors
anticipate a continuation of strong economic growth and an
early interest rate hike this year.
 If hiring was on the slow side, the currency would likely
ease somewhat and bond prices would rise.
 The Bank of Canada held its overnight rate steady at 1
percent on March 1 and gave no signal of plans to resume
tightening soon. [ID:nN01122073]
 Most dealers and global strategists surveyed by Reuters
before the bank's latest decision expected the bank to hike
again in the first half of 2011, with May 31 seen as the most
likely date for the next move. [CA/POLL]
 Overnight index swaps, which trade based on expectations
for the key central bank rate, imply a fully priced-in rate
increase on the bank's Sept. 7 decision date. (BOCWATCH: Quote, Profile, Research)
 (Reporting by Louise Egan; editing by Jeffrey Hodgson)