Canada's Unemployment Rate Down

Unemployment rate slipped to 6.1 percent in July from 6.2 percent in June, but only because many people -- especially the young -- left the work force.

OTTAWA (CP) -- The unemployment rate slipped to 6.1 percent in July from 6.2 percent in June, but only because many people -- especially the young -- left the work force.

There were actually 55,000 fewer people working in July than in the previous month, Statistics Canada reported Friday.

Most of the job losses came in part-time work and were centred in manufacturing, business building and other support services and educational services.

Quebec, Ontario, Saskatchewan and Prince Edward Island all saw job losses.

Employment in Quebec dropped by 30,000 and the provincial jobless rate rose to 7.4 percent. Ontario lost 19,000 jobs overall, but its unemployment rate actually dropped to 6.4 percent from 6.7 percent as an estimated 42,000 people left the job market.

Manufacturing jobs continued to disappear in July. Ontario lost 41,000 such jobs, although Alberta added 7,000.

In the last year, employment in manufacturing has dropped by 88,000, with almost all the losses in Ontario.

Although Ontario has lost factory jobs, employment in the province has risen since July 2007 because of gains in public administration, health care and social assistance, construction and educational services.

The only job gains across the country were in accommodation and food services, where 22,000 people were hired.

The pace of job growth has slowed sharply this year, with gains averaging only 10,000 a month compared with the average monthly gain of 30,000 reported for 2007.

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