The Canadian economy added 15,200 jobs in August to keep Canada's unemployment rate steady at 6.1 per cent.

The August results were being closely watched because the two previous months had shown declines in employment. Statistics Canada reported Friday that last month's net employment gains were mostly full-time private sector jobs. The private sector had lost 95,000 jobs in July, but added 40,900 in August. However, public-sector employment fell by 23,900 in the same period.

In Ontario, two months of declines were reversed as the province added 14,000 net jobs. The manufacturing sector also showed a bounce as it added 13,800 jobs.

But Statistics Canada also noted that Canada has created only 87,000 new jobs this year compared to more than 220,000 in the first eight months of 2007. In July, the economy lost 55,000 jobs.

"The July number was horrid," Carolyn Kwan, senior economist with Merrill Lynch Canada, told The Canadian Press before the August numbers were released.

Economists warn against giving too much weight to any single month. However, an economics professor at McGill University told CP the August job numbers offer some relief for Prime Minister Stephen Harper's government, which is expected to call an election this weekend.

"I think it helps them in that there's no avalanche of unemployment that they're getting caught up in," Bill Watson said.

The Canadian dollar rose almost three-quarters of a cent to above 94 cents US after the jobless data was released, but loosened its grip on the gains later in the day.

However the stock market doesn't appear to be getting a boost from the employment numbers.

The TSX main index continued its slide, posting triple-digit losses on Friday until slightly reducing its losses in the afternoon. It has fallen 1,000 points loss over four days.

Meanwhile, the Office of the Superintendent of Bankruptcies reported there were 7,452 personal bankruptcies reported in July, up 19 per cent compared to a year ago.

Statistics Canada also reported that:

  • 86,000 jobs were created this year in construction. The key labour market showed a 7.4 per cent increase from the same period last year.
  • Employment dropped by 22,000 jobs in health care and social assistance in August.
  • Jobs in agriculture were down 18,000 in August.

When compared to its neighbour to the south, the Canadian data looked pretty good. The United States reported 605,000 fewer people had jobs in August than at the start of the year. 84,000 jobs vanished in the U.S. last month pushing the jobless rate from 5.7 per cent to 6.1 per cent.

In Canada there was a modest growth in job creation with 86,900 net jobs gained, but still down from 221,000 during the first eight months of last year.

"In normal circumstances, this would be a ho-hum report," Douglas Porter of BMO Capital Markets told CP. "But compared to July's dismal report and compared to today's release in the U.S., it certainly stands tall."

This marks the first time in over 26 years that the official U.S. unemployment rate has not been below Canada's.

With files from The Canadian Press