The month of May failed to bring a substantial thaw in Canada's ice-cold labour market, as mounting job losses pushed the nation's unemployment rate to an 11-year high.

More than 1.5 million people across the country were out of work as of last month, with Ontario shedding 59,700 additional positions through May.

In the rest of the nation combined, by comparison, 41,800 jobs were lost.

"Ontario continues to take the brunt of the blast when it comes to these job loses," economic analyst Theo Caldwell told CTV News Channel Friday afternoon.

The Ontario slump has been attributed to more layoffs in the automotive and manufacturing sectors.

The national unemployment rate now sits at 8.4 per cent and some economists fear that the rising Canadian dollar -- which has hovered above 90 cents US for the past week -- could impede recovery in Ontario, which has traditionally benefited from a low Canadian dollar.

Since the recession began 11 months ago, Canada has lost 363,000 jobs; a number equal to about 2.1 per cent. Of those losses, 234,000 cuts have come in Ontario.

Still, employment figures in the U.S. showed that the rate of job losses is slowing, offering renewed hope that the worst of the recession has past.

"There are positive glimmers of hope," said Caldwell, adding that the U.S. market is showing "tepid signs" of economic recovery.

But BNN's Michael Kane said job losses should be expected during the economic downturn.

"Even when the recession ends and the economy starts to rebound, we will continue to see job loss for several months," Kane said.

Although Ontario saw job losses, employment actually increased in Manitoba, Nova Scotia and Saskatchewan.

Political reaction

Using the latest jobless numbers as ammunition, the Liberals took aim at the Conservatives Friday over what they say are flaws in Canada's employment insurance system.

Liberal MP Scott Brison said the EI safety net that many out-of-work Canadians need is simply not there.

"When will the Conservatives fix the EI system to help Canadians survive this economic crisis?" Brison asked during question period in the House of Commons on Friday.

"Because of the inequalities in the system, many of these workers can't access employment insurance now when they need it," Brison said.

Currently, the qualification period for EI ranges from 420 hours to 700 hours, depending on the region.

The Liberals want the qualifying period cut to 360 hours of work in the previous year.

Human Resources Minister Diane Finley said Canadians are getting a better response from the EI system.

"Over 75 per cent of Canadians who lose their jobs today have easier access to EI, they have it for a longer period of time then they would have just last fall," Finley shot back Friday in the House.

Finley said the Tories have made significant investments in helping the manufacturing industry.

"We're offering EI benefits of up to two years if they invest in their own training to help them get the jobs of the future," she said.

Brison said Canadians who can't even pay for their groceries won't be able to pay for extra education.