Canada's economy created 35,800 new jobs in August, yet the unemployment rate remains over 8%, Statistics Canada announced Friday morning.
The jobless rate rose to 8.1% last month from 8% in July -- the first time the rate has been above 8% since May. And it's all due to an increase in the number of people looking for jobs.
The numbers are likely to worry economists who fear that the slowing economy is taking a toll on the country's previously strong labour market.
The job gains in August were slightly better than the 30,000 new positions that economists had been expecting, but most had also been expecting the jobless rate to hold steady at 8%.
Statistics Canada noted that much of the job gains last month were due to 65,000 contract teachers and educational workers who were re-hired in August, after reporting they were out-of-work in July. Once that seasonal variation in the education sector is discounted, it appears the economy actually shed jobs last month.
Once the job gains for July and August are averaged out, the labour market had an average pickup of 13,000 jobs during those summer months -- much lower than the 51,000 average monthly increase seen during the first six months of the year.
The agency notes there were increases in professional, scientific and technical services and in natural resources in August.
"These gains, however, were dampened by losses in manufacturing; business, building and other support services; and information, culture and recreation," it said.
Quebec, Saskatchewan and Newfoundland had the biggest pickups in jobs in August, but there was little change in other provinces.
Average hourly wages rose 2.3% in August from a year ago. That's up from an annual increase of 2.2% in July.
