The Canadian economy keeps pumping out jobs. Employment rose by 41,000 in September, though few were full-time jobs.

The unemployment rate also ticked up to 7.7%. Economists don’t see this pushing the Bank of Canada to raise rates next week.

Bank of Montreal said in an announcement released this morning that the employment numbers are double its expectations, bringing the year-to-date gains to 427,000. The bank says that the increase in the workforce participation rate, which pushed the jobless rate higher, “is a sure sign of growing confidence in both the job market and the economic outlook.”

“It may not have been picture-perfect this time around, but there is still only one conclusion that can be drawn from this morning’s employment report: Canada’s job-creation machine is still running at full tilt,” said TD Bank in its release. “In spite of all the doom and gloom that is reportedly eating into business confidence, the Canadian economy still managed to pump out another consensus-smashing 40,700 jobs in September.”

“Today’s report confirms that Canada’s economic expansion remains vibrant,” said BMO. “We expect growth of 3% in the third quarter, in line with potential growth. The employment report reinforces the view that the outcome of Wednesday’s policy announcement by the Bank of Canada remains a toss-up. The domestic economy is certainly strong. However, it may not be strong enough to offset policymakers concerns about the downside risks to the economic outlook.”

BMO concludes that, with equity markets in freefall, the U.S. economy fragile and the growing threat of a war in Iraq, the Bank of Canada is expected to stay on the sidelines.

“There‚s nothing wrong with adding 40,000 jobs a month, but the details of this months employment report still point to a moderation in Canadian economic growth,” offered CIBC World Markets. “The unemployment rate won’t stay stuck at 7.7% if some of those new job seekers move back to the ‘not looking’ category. The Canadian jobs data were a mixed bag overall, and won’t alter the consensus view that the Bank of Canada will leave interest rates on hold next week.”