TORONTO - More Canadians are facing the unemployment line as the recession deepens and companies around the country, from fashion designers to forestry outfits, respond by slashing their workforces.

That's leaving the employment market flooded with people who are scrambling to compete for limited new jobs while facing the prospects of re-entering the workforce at a time when the economy is shrinking and competition is fierce.

Statistics Canada reported Thursday that Canadians are losing their jobs at a rate that hasn't been seen since the early 1980s, when a recession ripped through the economy and pushed the jobless rate to more than 13 per cent.

According to the agency, the March jobless rate nationally hit eight per cent.

However, Tim McGonigle, a unemployed forestry worker from Lake Cowichan on Vancouver Island, thinks the current recession is worse this time around.

"It's similar to the 80's, but during that recession you knew there was an end in sight," he said.

"There was a dim light at the end of the tunnel, but I don't see that tunnel ending."

McGonigle was handed his pink slip after working in the forestry industry for 31 years, and he is living on employment insurance benefits.

He said the dismal state of the economy has forced him reconsider his options, which include going back to school to upgrade his skills as a pharmacy dispensing technician in hopes of landing work at a hospital.

"I've realized that four months with no end in sight is probably a good time to look for alternatives," he said.

Jumping from one industry to another isn't ideal for many Canadians, but when it comes down to paying the bills the hope of scoring a dream job often goes out the window.

Toronto-based fashion marketer Charlotte Jenkins, 28, said she's reluctantly coming to terms with that reality after losing her job at a high-end clothing company earlier this month as orders from retailers slumped.

"I hope to get another huge career, but I'm really worried that there aren't any careers left," she said.

"Everyone who has their job is hanging onto it for dear life, and unless they move away, get pregnant or die, their job is never going to become available.

"I don't want to get stuck working at a retail job or just doing a task day-to-day. I want a career that means something. It's going to be tough to find that."

Jenkins said losing her job has sent a shockwave through her life in just a matter of days. She kept the news from her mother because she doesn't want her to worry, and she has stayed at home to avoid spending money.

"I've been wandering around my house looking for things to return at stores," she said.