The economic region containing Simcoe County found its labour market continued to contract in February. As was the case in January, both the labour force and employment decreased last month.

Figures released Friday by Statistics Canada show Economic Region 540 lost 5,300 jobs, while 4,000 people left the labour force. Because the losses in employment outpaced labour force withdrawals in February, the regional unemployment rate edged up slightly - reaching 5.2 per cent from five per cent last month.

While employment figures improved by 700 jobs compared to February 2007, unemployment increased by 900. This resulted in a very small increase in the unemployment rate year-over-year.

The losses in employment were found primarily in the goods-producing sector, which lost 5,500 jobs in February. Construction and manufacturing had the greatest losses. The services-producing sector recorded a slight increase in employment in February.

This was entirely due to employment growth in trade as this segment added nearly 4,000 jobs last month. Compared to the same time last year, the goods-producing sector had 1,100 fewer jobs, due to the loss of employment in construction and manufacturing. Trade continues to power growth in the services-producing sector with the addition of 7,100 jobs year-over-year.

Even so, the region’s 5.2-per-cent reading still means it’s better off than the province as a whole, which found its jobless rate identical to February 2007, at 6.1 per cent, though the rate jumped one-10th of a percentage point over January’s figure of six per cent.

The national average increased two-10ths of a point over January to an even six per cent, which is three-10ths of a point down, however, from the previous February.

Economic Region 540 takes in Simcoe, Wellington and Dufferin Counties and Waterloo Region.