Employment in Canada jumped by 49,000 in June, Statistics Canada reported Friday. The unemployment rate edged down 0.1 percentage points to 7.7%.

This follows slight declines in April and May, though most of the increase can be attributed to part-time summer jobs.

Numbers improved for service-producing industries, especially transportation and public administration — both public sector employers. However, employment in manufacturing continued its downward trend that began at the end of 2002, falling by 23,000 in June. The Bank of Canada is likely to monitor this mixed picture closely.

Meanwhile, StatsCan also reported that Canadian companies exported goods worth just over $32.6 billion. That’s a drop of 2.8% from April and the lowest level since October 2001.Exports fell in all major categories except automotive products, which remained flat. Hardest hit were exports of agricultural and fishing products, which declined 9.1%, and energy products, which were down 7.0%. Canada’s beef industry has been trying to cope since May 20, when it was announced that a single breeder cow in northern Alberta tested positive for mad cow disease.

South of the 49th parallel, wholesale prices rose in June — the first time in three months. But while food and energy prices rebounded, general inflationary pressures on the economy continued to recede. The core index, which excludes volatile food and energy items, slipped 0.1%.

U.S. Federal Reserve chairman, Alan Greenspan, says high natural gas prices and shortages are hurting some industries, but the impact on the overall economy isn’t yet clear. He predicted during testimony before a Senate Committee, yesterday, that a loss of jobs in industries heavily dependent on natural gas as U.S. companies lose business to foreign competitors where energy is cheaper. And some economic fallout is likely to occur from higher heating prices next winter, he said.

The U.S. Commerce Department is reporting that the country’s trade gap widened to US$41.84 billion in May up from a US$41.65 billion in April.

This cummulation of sour news has had an adverse effect on this morning’s future trading. It1s flat ahead of the opening of equities markets.

Overseas, the Nikkei closed at 9,635.35 points, down 320.27 points, or 3.22%, from Thursday. In Hong Kong, the Hang Seng Index closed at 9,911.50 on Friday, down 71.81 points, or 0.71%.

But in Europe at midday on the FTSE100 is up 10.2 points at 4,039.0. France’s CAC has climbed 0.27% and Germany’s DAX is 0.53% higher.