Canada sheds 35,700 jobs in November, unemployment rate up to 7.1%

The Canadian economy lost nearly 36,000jobs in November asthe armiesof part-time workers hired for the October federal election were let go.

Statistics Canada says the number of public administration jobs fell by 32,500 last month, almost matching October's increase in the same category.

• Canadian economy returns to quarterly growth amid signs of weakness
• Solid U.S. job gains make Fed likely to hike interest rates

"The November decline in public administration was seen acrossall provinces," Statistics Canada said. "The decrease was concentrated among survey interviewers andstatistical clerks, an occupational group that corresponds with thetype of work done during the election."

The job losses, which were almost four times larger than the 10,000 that economists had been expecting, forced the national unemployment rateup slightlyto 7.1per cent, from sevenper centin October.

While the economy lost a total of 72,000 part-time jobs last month, it also added 36,000 full-time workers. That had Scotiabank economist Derek Holt saying the November report was not as bad as it might seem.

"It does suggest the underlying details are not as bad as the headline reading imply and that the composition of job growth is still mostly favourable," he wrote in a morning commentary.

Alberta lost nearly 15,000 jobs last month and itsjobless rate jumped 4/10ths of a percentage point to 7.0 per cent, as the oil-related slump continuedto take a toll.

That was the biggest decline in employment among the provinces and leaves Alberta's unemployment rate at a five-year high.

Manitoba,New Brunswick and Prince Edward Island also lost jobs, while employment in other provinces wasrelatively unchanged.

Contrast with U.S.

Several economists noted the stark contrast with the United States, where the economy addeda solid 211,000 jobs last month.

"In a world where the U.S. economy is churning out 200,000 job gains permonth without breaking a sweat, and oil prices are barely holding above $40 US, the Canadian dollar will struggle for some time yet,"said BMO chief economist Douglas Porter.

"The overall picture [in Canada] is one of an economy struggling to post consistent gains and likely headed for sub-par GDP growth in Q4,"he said.

David Madani, of Capital Economics, saw further weakness in Friday's othereconomic data releases, pointing to reports thatCanada's exports fell 1.8 per cent in Octoberand the country'strade deficit with the rest of the world widened by $500 million to $2.8 billion.

"Accordingly, we still think that more policy stimulus will be needed eventually, both from monetary and fiscal policymakers," Madani said.

One piece of encouraging news from the labour report related to what appears to be a long-awaited comeback in manufacturing employment. Statistics Canada said the country added 17,400 manufacturing jobs in November the first significant increase since May.

Unemployment rates by province

November 2015 October 2015

N.L.: 13% 13%

P.E.I.: 10.4% 9.9%

Nova Scotia: 8.6% 7.8%

New Brunswick: 8.7% 9%

Quebec: 7.5% 7.7%

Ontario: 6.9% 6.8%

Manitoba: 6.1% 5.3%

Sask.: 5.5% 5.6%

Alberta: 7% 6.6%

B.C.: 6.2% 6.3%

Canada: 7.1% 7%

Source: Statistics Canada