Canada's employment rate fell for the second month in a row in November as the economy shed 18,600 jobs. That pushed the jobless rate up one notch to 7.4 per cent.

It's now been five months that Canada has been looking at a flat labour market. Still, November's job losses weren't as severe as October's, when the country lost 54,000 jobs.

November's report should now provide economists with a clearer picture about the health of Canada's labour market. The last two reports saw wild swings, with the economy creating 61,000 jobs in September and then losing those 54,000 in October, mostly wiping out September's gain.

It now seems more evident that the robust jobs market Canadians have been enjoying over the last two years is fading.

There's no question that employment growth has cooled sharply," Robert Kavcic, economist with RB Capital Markets, said in a morning note to clients. "Consistent with an economy that is seeing very modest growth once you smooth out the volatility caused by temporary factors in the second and third quarters."

In a note to clients, economist David Madani at Capital Economics called November's employment decline "surprising" and "discouraging."

"Given the deepening global financial crisis, an expected recession in Europe, and now a slowing Chinese economy too, there is the risk of a recession," he said.

He added that with indications of falling consumer confidence, "the dip in the labour force participation rate might indicate that people are feeling more discouraged about employment prospects."

Statistics Canada says November's losses primarily came in part-time employment, which fell by 53,300, offsetting a gain of 34,600 in full-time workers.

There were job losses in retail and wholesale trade, as well as business, building and other support services.

These were partially offset by increases in "other services" (such as personal services and repair and maintenance), as well as in construction, natural resources, and utilities.

Regionally, Quebec took the brunt of the declines with a drop of 30,500 jobs split between part-time and full-time. Saskatchewan also lost jobs. Employment increased in Nova Scotia and there was little change in the other provinces.

Earlier this week, the Organization for Economic Co-operation and Development said Canada is currently going through a rough patch of weak growth, mainly because of Europe's debt problems and the global economic slowdown.

It said it expected Canada's economy to muddle through 2012, but it added that all bets were off if the European debt crisis spreads beyond the continent.

Here's what happened with Canada's job picture provincially in November (previous month in brackets):

• Newfoundland 13.2 (12.9)
• Prince Edward Island 11.1 (11.2)
• Nova Scotia 8.6 (8.6)
• New Brunswick 9.8 (9.4)
• Quebec 8.0 (7.7)
• Ontario 7.9 (8.1)
• Manitoba 5.5 (5.2)
• Saskatchewan 5.1 (4.1)
• Alberta 5.0 (5.1)
• British Columbia 7.0 (6.6)