Canada Oct jobless rate jumps on hefty layoffs

OTTAWA, Nov 4 (Reuters): Unexpected job losses in October pushed Canada's unemployment rate higher, confirming expectations the economy is weakening and interest rate increases are off the radar. The economy unexpectedly ditched almost all the jobs gained in September as a sluggish economy led to layoffs in manufacturing and construction, according to Statistics Canada Friday. Net job losses of 54,000 last month were the largest since February 2009 and pushed the unemployment rate back up to 7.3 per cent -- the same level seen in August -- from 7.1 per cent. The data contrasted with market expectations for 12,000 new positions and followed an equally surprising increase in September of nearly 61,000. "Very, very weak job report, I don't think there is anything really redeeming here," said Sheryl King, head of Canadian economics at Bank of America-Merrill Lynch. "We were on the back of a strong month before so you could argue that there is a bit of mean reversion, but the drop in manufacturing is worrisome at this point," she said. The Canadian dollar weakened to a session low after the report to C$1.0170 to the US dollar, or 98.33 US cents, nearly a cent lower than last Thursday's North American session close at C$1.0081 to the US dollar, or 99.20 US cents. Most of the details in the report were discouraging, with the private sector shedding 32,000 jobs and some 72,000 full-time positions vanishing.