Canada jobless less than expected

Canada saw fewer job losses than expected in June, but the unemployment rate hit an 11-year high, data shows.

The number of job losses for the month was 7,400, after falling 42,000 in May. Analysts expected a fall of 35,000.

While the figure pushed the rate of unemployment up from 8.4% to 8.6%, this was also less than forecast.

The government said employment remained well below its October 2008 peak, but noted a shift in the pace of the downward trend in the second quarter.

Net job losses for the three months to the end of June was 13,000, after falling 273,000 in the first three months of the year.

However, while 47,500 full time jobs were lost last month, around 40,100 part-time positions were added.

"The job report is more good news than bad, but it would have been much better had the jobs been full-time" said Dale Orr, an economist and private consultant.

Figures recently showed Canada's economy shrank by 5.4% on an annualised basis during the first quarter after the economy shrank by 3.7% in the last quarter of 2008.

Despite being the worst result for 18 years, it was better than expected.