Canada Labour Market Loses Momentum Amid US Tariffs
Canada's labour market lost momentum in August as employment fell by 41,700 jobs, exceeding economists' expectations of a gain of about 15,000 jobs.
The decline was sharply worse than July, when employers added 75,100 positions. Statistics Canada attributed the weakness to trade uncertainty caused by new U.S. tariffs announced towards the end of August.
Anupriya Gangopadhyay, Economist at Business Data Lab and Canadian Chamber of Commerce, noted that youth employment softened as the summer hiring season neared its end, while student labour market conditions were better than last year.
The Canadian dollar weakened following the data, falling 0.51% to C$1.3860 per U.S. dollar, or 72.15 U.S. cents. The yield on Canada's two-year government bond rose 1.3 basis points to 2.469%.