ST-JOSEPH-DE-LA-RIVE, Que. - Prime Minister Jean Chretien defended his government's policies yesterday, calling last month's sharp increase in unemployment nothing more than a blip.

An end to federal spending cuts and lower interest rates should soon wipe out the rise in the jobless rate, Chretien said during a one-day pre-election swing through rural Quebec.

And low interest rates ``will create the confidence for the economy to create the number of jobs we would like,'' he added across the river in St-Joseph-de-la-Rive.