Canada reports job losses and widening trade surplus

Canada experienced significant shifts in its economic indicators during the late summer. In September, the country lost 68,000 jobs, marking the second consecutive monthly decline. The unemployment rate rose to 6.5 per cent, while the labor force participation rate fell to 64.8 per cent, the lowest level since December 1997, excluding the 2020 pandemic period. The job losses were concentrated in the public sector, which saw a decrease of 70,000 positions, including 35,000 in educational services and 23,000 in health care and social assistance. Quebec reported the largest provincial decline with 49,000 jobs lost, while Alberta added 23,000.

In contrast, Canada’s merchandise trade surplus widened significantly to $4.2 billion in August, up from $787 million in July. This marked the sixth consecutive monthly surplus. The increase was driven by a 2.5 per cent rise in exports, led by energy products, industrial machinery, and electronic equipment. Notably, Canada’s trade surplus with the United States reached $11.2 billion in August, representing the largest positive monthly change ever recorded in the trade balance with its largest partner.