(Adds investor quotes and details throughout, updates prices)

* TSX ends down 40.31 points, or 0.2%, at 19,022.86

* Canada's unemployment rate falls to a new record low

* Energy sector slips 1.1%; oil settles 2% higher

* Materials group declines 1.3%

TORONTO, July 8 (Reuters) - Canada's main stock index fell on Friday but was still up for the week, as investors weighed prospects of a global recession and domestic jobs data supported expectations for an outsized interest rate hike next week by the Bank of Canada.

The Toronto Stock Exchange's S&P/TSX composite index ended down 40.31 points, or 0.2%, at 19,022.86.

For the week, the index was up 0.9%.

"The TSX has made a modest advance this week, but in the face of recent volatility, we'll take it," said Elvis Picardo, portfolio manager at Luft Financial, iA Private Wealth. "I think investors can expect continued volatility in the summer months as fears of a potential recession ebb and flow."

Recession worries have battered equity markets globally in recent months, as central banks take aggressive measures to control inflation.

Expectations rose that the Bank of Canada would raise interest rates by three-quarters of a percentage point next week after data showed that Canada's unemployment rate fell to a new record low of 4.9% in June and that wages accelerated sharply.

The Federal Reserve has already hiked by that increment in the current tightening cycle and could do so again after data on Friday showed stronger-than-expected U.S. jobs growth.

"The (Canadian) data suggests an extremely tight labour market, and seems to reinforce traders' perception that the Bank of Canada will follow in the Fed's footsteps," Picardo said.

The energy sector gave back some of the previous day's strong gains, falling 1.1%, even as crude oil settled 2% higher at $104.79 a barrel.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.3%.

Among sectors that gained ground was consumer discretionary. It ended 0.8% higher, helped by a gain of 4.2% for Aritzia Inc as the fashion retailer beat quarterly earnings estimates. (Reporting by Fergal Smith; Additional reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Jonathan Oatis)