Canada’s jobs market will experience a modest recovery in 2010, according to a report from Royal Bank of Canada (RBC).

The report predicts that while GDP growth will be 3.1%, a stabilising automotive sector will support a gradual improvement in the labour market, with unemployment rates predicted to average 8.4% in 2010 before falling to 7.7% in 2011.

This week International recruiter Manpower’s employment outlook survey of 1,900 Canadian employers also pointed to a modest recovery for the upcoming quarter revealing that 17% plan to increase

headcount in Q2 of 2010, while 6% anticipate cutbacks.