Economy Adds 26K in Aug., Beats Estimates

It may still have been summer, but the economy made small moves ahead last month.

Figures released by Statistics Canada Friday showed Canada's economy added 26,000 new jobs in August, but the jobless rate inched up to 7%, because more people entered the labour force looking for work.

The agency also said employment rose in Quebec and in Newfoundland and Labrador, while it declined in New Brunswick. There was little change in the other provinces.

According to the data, there were more than 52,000 new full-time jobs created during the month, more than enough to offset a loss of 26,000 part-time jobs.

Despite the surge of new jobs, the jobless rate ticked up from 6.9% in July because of an influx of new job seekers.

Economists had been expecting a gain of about 16,000 new jobs and for the jobless rate to remain at 6.9%

In stark contrast to August's numbers, the data agency reported the economy lost a greater-than-expected 32,000 jobs in July.

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