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Canada lost 22,000 jobs in January but the unemployment rate dropped as a greater number of people stopped looking for work, Statistics Canada said.
The country's unemployment rate dropped from 7.1 percent to 7 percent, the national data agency said.
On the month Canada lost 22,000 jobs but the previous 12 months saw a gain of 286,000 jobs, a 1.6 percent gain, "all in full time work," the agency said.
The average number of hours worked in the previous 12 months rose 1.7 percent.
Public sector employment fell 27,000. Educational services and manufacturing also lost jobs in the month. Gains were made in construction and public administration, the agency said.
