2012.06.08 15:56:34 *Vietnam Central Bank: To Cut Refinancing Rate to 11% From 12% Monday

--Manufacturing posts best gain since December 2010 --Wage inflation grows at fastest pace since December 2009 --Bank of Canada in wait-and-see mode before hiking rates (Adds comments from economists and background in paragraphs 6, 8-9, and 11.) By Nirmala Menon OTTAWA--Canadian job creation in May was the slowest in three months but still beat forecasts following the best back-to-back gain in 31 years, led by the biggest increase in the manufacturing sector since December 2010. Hiring was concentrated in the public sector, with employers hiring more part-timers than full-time workers, while the ranks of the self-employed swelled. The unemployment rate held steady and wage inflation grew at the fastest pace since October 2009. Overall, the economy added 7,700 net new jobs in May following a whopping 140,500 increase over the prior two months, Statistics Canada said Friday. This marked the best three-month gain since the three months to June 2010. The consensus call was for 5,000 net new jobs to be created, according to a report from Royal Bank of Canada. The unemployment rate was unchanged at 7.3%, as expected. The Canadian dollar were slightly weaker after the report and bond prices rose, pushing yields lower. "While some of the details were a touch disappointing, I think there were also some flashes of strength. Overall, I think the story is, the job market remains relatively healthy," Douglas Porter, deputy chief economist of BMO Capital Markets, said in an interview. The acceleration in wage inflation "does add further evidence that the labor market has strengthened," he added. Average hourly wages accelerated to 3.0% year-on-year and the rate for permanent workers sped up to 2.9%, both growing at the fastest pace since October 2009. Economists said the report doesn't do much to change the Bank of Canada's hawkish bias, but said the central bank is likely to wait and see how global developments pan out before pulling the rate trigger. The central bank on Tuesday held the overnight rate steady at 1.00% for the 14th consecutive time and said "some modest withdrawal" of stimulus "may become appropriate" but toned the bias down slightly by saying this was conditional on continued economic expansion. "Facing renewed euro-zone fears and the sharp deterioration in global financial conditions and confidence, the Bank of Canada is in a bind," David Tulk, chief Canada macro strategist at TD Securities, wrote in a report. If conditions deteriorate further, the Bank may have to shelve rate hikes plans, just as it did last year, he said. Employers filled 1,400 full-time positions and hired 6,300 part-timers in May. The public sector added 6,900 jobs while the number of private-sector jobs declined by 22,500. The number of self-employed increased by 23,300. Manufacturing jobs increased by 36,400, which Mr. Porter sees as the big story in the report. He attributed the six-month stretch of factory job gains to the comeback in the auto sector, thanks to strong U.S. auto sales. Employment in educational services rose by 25,700, the most since last September. Retail and wholesale trade jobs increased 23,600, the most in a year. Employment in information, culture and recreation fell by 27,300. Construction jobs declined by 27,000, the largest drop since last August. Overall, the goods-producing sector added 11,100 net new jobs while the services-producing sector lost 3,400. The labor force increased by 15,700 and the participation rate, which is the share of the population in the labor force, was steady at 66.8%. Write to Nirmala Menon at nirmala.menon@dowjones.com (END) Dow Jones Newswires June 08, 2012 09:57 ET (13:57 GMT)