Canada loses 54,000 jobs in October

Canada's unemployment rate rose to 7.3 per cent in October as the country lost a total of54,000 jobs, Statistics Canada said Friday.

The economy shed 71,700 full-time jobs, while part-time employment grew by 17,700.

The October job losses were a surprise, as the consensus forecast of economists had been for employment to rise by 15,000.

Last month's decline in employment also wiped out the bulk ofthegain of 61,000 jobs inSeptember. It was the largest jobs decline in almost three years, dating all the way back to March 2009, during the depths of the recession.

"While job losses in any given month are by no means rare, losses of this magnitude are extremely rare, aside from recessionary periodsthe last such hefty job drop outside of recession was in September 1996," said BMO Capital Markets deputy chief economist Douglas Porter in a commentary.

Most of the decline last month occurred in manufacturing which lost 48,000 jobs in the month.

"Its almost as if the strong Canadian dollar and weak U.S. recovery caught up with the sector in one fell swoop," Porter said.

The construction sector shed 20,000 jobs, while the natural resources sector wastheonly oneto see job gains as it added 12,000 positions.

Wide-ranging losses

Eight of sixteen job categories the agency tracks lost jobs, and only two sectors posted mildly notable gains.And five of 10 provinces had job losses.

"The magnitude and breadth of the decline is disconcerting here," Scotiabank economist Derek Holt said of the report. "The headline volatility from one month to the next should be dismissed, but it's the structural trends here that are disturbing," Holt said.

The drop in full-time jobs was especially concerning, Holt said.

The Canadian dollar sold off against the U.S. dollar in the wake of the report. The loonie was downmore than one cent to trade at 98.16 cents US.

Speaking from the G20 summit in Cannes, France, Finance Minister Jim Flaherty called the unemployment report"disappointing."

"Were an open trading country,and we get buffeted when thingsbecome difficult elsewhere, asthey are now in Europe," he said.

Prime Minister Stephen Harper, also in Cannes, added he was "disappointed with the numbers and concerned about them."

Ontario lost39,000jobs last month. The unemployment rate in the province rose0.5percentage points to8.1 per cent.

Newfoundland and Labrador was the only province to experience notable employment gains in October, as the province added4,100 jobs.

The provincial unemployment rateeased to 12.9 per cent from 13.5 per cent reported for September.

The poor Canadian jobs report came the same day as a report from the U.S. Labour Department that said the economy created about 80,000 jobs last month, close to expectations of 95,000.

The U.S. jobless rate was9.0 per cent, down from 9.1 per cent in September.