Canada's Labour Market Takes a Hit in August

Canada's labour market shed 42,000 jobs in August 2026, reversing a cumulative gain of 181,000 positions recorded from April through July. The unemployment rate held steady at 6.4 per cent, while the employment rate fell 0.1 percentage points to 60.8 per cent.

The decline followed Canada's economy posting annualized real GDP growth of 3.3 per cent in the second quarter of 2026, the fastest quarterly pace since early 2023.

Employment declined in various sectors, including business, building and other support services; public administration; natural resources; utilities, but manufacturing was the only sector to record a significant increase, gaining 22,000 positions (+1.2%), with most of that increase (+14,000; +1.7%) in Ontario.