Economy sheds 42,000 jobs
The Canadian economy lost 42,000 jobs in August, missing expectations for growth and ending a period of steady expansion. Despite the decline, economists suggest the steady unemployment rate of 6.4% indicates the labor market remains resilient rather than signaling an immediate crisis.
Why it matters
This data provides a critical pulse check on the Canadian economy's health amid high interest rates and international trade tensions like U.S. tariffs.
OTTAWA - Economists weren’t ringing any alarm bells after fresh data showed the labour market broke its hot streak with a loss of 42,000 jobs in August. The unemployment rate held steady at 6.4 per cent last month, Statistics Canada said Friday. August’s losses fell short of economists’ expectations for a gain of 15,000 positions. Heading into last month, employers had been expanding payrolls at a steady pace. The economy added 181,000 positions from April through July, including a gain of 75,000 jobs in July alone. Most economists weighing in Friday weren’t concerned to see the labour market give back some its recent gains. Andrew Hencic, senior economist at TD Bank, suggested in a note to clients Friday that one month of soft data should not define the labour market. Steadiness in the unemployment rate is more important than the headline job losses, he argued.
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