(Adds details of release, background)
OTTAWA, Sept 5 The Canadian economy unexpectedly
lost a net 11,000 jobs in August from July as well as a whopping
111,800 positions from the private sector, Statistics Canada
data indicated on Friday.
The jobless rate stayed at 7.0 percent. Analysts forecast
that 10,000 positions would be added after the gain of 41,700 in
Full-time jobs dropped by 2,300 from July while part-time
jobs decreased by 8,700. The labor participation rate - of
particular interest to the Bank of Canada - slipped to 66.0
percent, the lowest since November 2001.
The 12-month gain was a measly 81,300 jobs, or 0.5 percent,
while the six-month moving average for employment growth dropped
to 10,200 from 10,900 in July.
The gloomy figures provided more evidence there was still
plenty of slack in the Canadian economy. The Bank of Canada has
said it will not raise interest rates from near-record lows
until it sees signs of a firm economy.
The fall of 111,800 private-sector employees amounted to 1.0
percent, equaling the record month-on-month drop seen in April
1982. Overall, 97,800 employees lost their jobs while the number
of self-employed rose by 86,900.
July's jobs data was marred by a high-profile error caused
by a botched update to a computer processing program, which
meant Statscan initially said just 200 jobs had been
(Reporting by David Ljunggren and Randall Palmer; Editing by