OTTAWA, Aug 9 (AFP): Canada's economy lost 55,200 jobs in July, the highest monthly figure in 17 years, the government said yesterday.
Statistics Canada said the overall unemployment rate fell slightly to 6.1 per cent, from 6.2 per cent, as more people withdrew from the jobs market than lost their jobs.
Most of the July losses, some 48,000 jobs, were in the part time sector, the agency said.
"Employment decreases in July occurred in manufacturing; business, building and other support services; and educational services. The only significant gains were in accommodation and food services," it said.
Statistics Canada also said that overall, employment gains have averaged 10,000 per month in 2008, compared with a monthly average of 30,000 in 2007.
The report raised concerns among analysts.
"Though most of the job losses in July were part time, this latest jobs report depicts a worrisome trend in the Canadian labour markets," said Stefane Marion of National Bank.
"If the string of job losses endures for a couple of more months at a time when economic growth in the US deteriorates, the BoC (Bank of Canada) could be forced to provide extra stimulus."
Craig Alexander of TD Securities called the July figures "absolutely terrible."
"Markets were looking for 5,000 jobs growth and ended up with 55,000 losses."
