Kamloops was slightly above the provincial unemployment rate but below the national average last month.

Statistics Canada's figures show an unemployment rate of 7.6 per cent for Kamloops, compared with 7.4 per cent for B.C. and 7.9 per cent nationally.

Kamloops's unemployment figure tied with Vernon's and both cities fared better than Kelowna (8.2 per cent), but was slightly higher than Nanaimo (7.1 per cent) and Prince George (7.3 per cent).

Thompson Rivers University economics professor Laura Lamb said Friday dropping below the eight-per-cent level has a positive psychological effect.

Even though it's still higher than the pre-recession unemployment rate of 6.2 per cent, it's good news.

There are other positives in the latest numbers.

"Most of this is private-sector job creation. That's really significant. A year ago, most of the growth was due to stimulus money and that was government money," she said.

"It was aimed at getting things going and give the private sector more confidence in going ahead."

Whether stimulus money or factors are behind more private-sector job creation, the slowly improving job situation is made even better by the fact there was growth in full-time jobs, said Lamb.

"There definitely are positive signs we are moving forward, we are out of the recession. The recovery is slow, though. And these statistics today confirm that. They confirm that things are improving, that shows in the increase in jobs in the private sector, in the construction sector," she said.

"So those factors contribute to cautious optimism about the economy."

As for Kamloops itself, the fact that the city's economy is fairly diversified is beneficial. Royal Inland Hospital, TRU and other large institutions are big employers, she noted.

The main factor holding back Canada's economic recovery is the financial state of its trading partners, particularly the U.S., Lamb said.

While the recovery might be slower than most people would like, the good thing is it isn't going so fast it prompts a spike in inflation.

"The Bank of Canada has been able to keep interest rates low. The low interests are expected to stimulate the recovery even further," she said.

Still, Lamb didn't think the unemployment rate was a strong indicator about consumer spending as we head into the Christmas shopping season - only that more job creation is probable during the next few months.