Canada's Jobs Report Dented by 42,000 Job Losses Amid US Growth
Canada's economy shed nearly 42,000 jobs in August, sending the Canadian dollar tumbling against the US dollar. The job losses were widespread, with business and support services cutting 20,000 positions, public administration losing 8,800 jobs, and natural resources and utilities shedding some as well.
However, manufacturing was a bright spot, adding 22,000 jobs mostly in Ontario. The unemployment rate remained at 6.4%, but the employment rate slipped to 60.8%, and wage growth cooled to 2.0% year over year - its slowest pace since 2017 outside of the pandemic.
In contrast, the US added 162,000 jobs in August, blowing past economists' expectations of around 53,000 to 56,000. The divergence between Canada and the US job markets led currency traders to punish the Canadian dollar.