The Canadian Press

The good news was a drop in Canada’s unemployment in January; the less-good news was that the bigger-than-expected decrease was due almost entirely to gains in part-time jobs.

Statistics Canada says January’s unemployment rate was 8.3%, one-tenth of a percentage point down from 8.4% in December.

The impetus was 43,000 new, part-time jobs. Full-time employment was little changed.

Economists had expected 15,000 jobs of all sorts would be added last month.

Despite job increases in four of the last six months, Canada’s employment was still 280,000 lower than in October 2008.

Economists, though, said part-time jobs are better than nothing.

“The erratic recovery in the job market continues.” wrote Douglas Porter, deputy chief economist at BMO Capital Markets.

“While the details of this report were less impressive than the headline results, there is little doubt that the job market is grinding forward.”

He noted that employment is just one-tenth of a percentage point below the levels of a year ago: “An amazingly quick turnaround from the dismal conditions of early last year, all things considered.”

Derek Holt of Scotia Capital said the data aren’t great, but there is improvement.

“The trend is right, if albeit volatile. A see-saw pattern of job gains and losses over recent months has the net picture coughing up job growth, warts and all.”

In total, the number of people working in Canada last month rose to 16,924,400, up from 16,881,400 in December. The number of unemployed fell to 1,531,700 from 1,555,800, Statistics Canada reported in its monthly Labour Force Survey.

The January job increases were mainly among adult women and youths.

There were 29,000 more young people working, which moved the youth unemployment rate down to 15.1% from 16%.

It was the first time youth jobs rose since the downturn began in late 2008.

Ontario accounted for 30,000 of the January job increases. The province’s unemployment rate was unchanged, at 9.2%, as more people went looking for work.

British Columbia and Manitoba also saw job gains. Nova Scotia lost jobs, while the other provinces were unchanged.

The Quebec unemployment rate actually dipped to 8% in January from 8.4% in December as some people left the labour market.

Overall, the largest job gains were in business, building and other support trades and retail and wholesale trade. These were partly offset by losses in professional, scientific and technical services, as well as agriculture.