Canada economy loses 42,000 jobs in August

Canada’s economy lost 42,000 jobs in August, a significant reversal from the previous months which saw 181,000 positions added between April and July. The unemployment rate remained steady at 6.4 per cent. This outcome fell short of economist projections, which had anticipated a gain of 15,000 positions.

Sector-specific data shows the public sector lost 20,000 positions for the third consecutive month. Major declines were noted in business, building, and other support services, as well as public administration, natural resources, and utilities. Regionally, Quebec and Ontario were the most affected, losing 19,000 and 18,000 jobs respectively. Young workers aged 15 to 24 also faced 19,000 job losses.

In contrast, the manufacturing sector provided a surprise boost, adding approximately 22,000 jobs. Despite this, annual wage growth cooled to 2 per cent, the lowest level since 2017. Statistics Canada noted that industries dependent on U.S. export demand face an uncertain economic context, partly due to recent tariffs on Canadian goods.