Canada Loses 42,000 Jobs in August as Labour Market Weakens

Canada’s economy lost 42,000 jobs in August, dealing a setback to the recent momentum in the country’s labour market. However, the unemployment rate remained unchanged at 6.4 per cent.

The latest figures from Statistics Canada came in below economists’ expectations, with analysts forecasting a net gain of around 15,000 jobs.

The public sector recorded the largest decline in employment, shedding 20,000 jobs and marking its third consecutive month of losses.

Meanwhile, Canada’s manufacturing sector showed unexpected resilience despite the impact of U.S. tariffs, adding 22,000 jobs during the month.

Average hourly wages also slowed sharply in August, rising by just 2 per cent year over year, down from 2.8 per cent in July. It marked the slowest annual wage growth since November 2017.

Economists say uncertainty surrounding the ongoing trade tensions with the United States may be prompting businesses to take a more cautious approach to hiring and investment.

Statistics Canada also reported that employment among young people aged 15 to 24 fell by 19,000 in August.