Hamilton's economy has received a blow on the job front, as the unemployment rate rose to 7.0 per cent in September from 6.5 per cent in August.

Statistics Canada released the numbers for the national employment rate Friday.

The national unemployment rate was 6.9 per cent. In Ontario, the unemployment rate fell to 7.3 per cent in September from 7.5 per cent in August.

The Canadian economy created almost 12,000 new jobs in September as fewer young people looking for work also helped slightly reduce the unemployment rate, Statistics Canada says.

"Amid all the to-ing and fro-ing in Canada's headline job tally so far in 2013, the underlying picture that has emerged is one of moderate gains — certainly a bit cooler than in recent years, but enough to trim the jobless rate," said Bank of Montreal chief economist Doug Porter.

The lacklustre jobs report followed a move by the Bank of Canada last week to lower its forecasts for economic growth in the second half of 2013 and possibly for next year.