Canada's Labor Market Loses Momentum with Over 41,000 Job Losses

The Canadian labor market lost momentum in August as the economy shed more than 41,000 jobs. The unemployment rate remained steady at 6.4%, but this reading comes before the impact of US President Donald Trump's new tariffs on Canadian exports.

Statistics Canada reported that most job losses were concentrated in full-time employment, which fell by 35,900 positions. Part-time employment also declined by 5,800. The service sector bore the brunt of job losses, with a decline of 51,500 jobs led by business and wholesale trade.

Average hourly wages for permanent employees slowed to 2% in August from 3% the previous month, reaching their lowest level in more than seven years excluding the COVID-19 pandemic period. The youth unemployment rate rose by 0.3 percentage points to 12.9%, reversing the downward trend seen from April through July.