The unemployment rate on P.E.I. rose to 11.7 per cent in August, wiping out hopes of what looked in July to be a promising summer.

The Labour Force Survey from Statistics Canada for August, issued Friday, showed 1,400 jobs disappeared on the Island in August.

The unemployment rate on the Island has been running between 11 and 12 per cent for the last year, but fell dramatically in July, to 10.2 per cent, on the strength of an increase in part-time jobs. The good news did not last into August. The unemployment rate increase took the big jump despite a slight drop in the work force.

George Jia, an economist at the University of Prince Edward Island, said most of the job losses came from two sectors: manufacturing, and food and accommodation.

"It's too early to say if this is going to be a long trend or if this is a small sort of thing. I would definitely keep an eye on that," Jia said.

"I want to concentrate more on the longer trends than focus on the monthly moves."

Nationally the economy created jobs, with the unemployment rate holding steady at 7.3 per cent.