Economy sheds 42,000 jobs
The Canadian economy shed 42,000 jobs in August, though the unemployment rate remained steady at 6.4%. Economists largely dismissed the job losses as a temporary blip, citing the noisy nature of the data and recent strong gains, with many pointing to the jobless rate as a more reliable indicator of labor market health.
Why it matters
This data provides insight into the health of the Canadian labor market and economy, influencing policy decisions and public perception of economic stability, especially amidst ongoing trade tensions with the U.S. and discussions around an aging population's impact on job growth.
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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