Canadian Economy Slows Sharply as Job Losses Mount
Canada's economy lost 41,700 jobs in August, marking a sharp slowdown from unusually strong summer hiring. The unemployment rate remained steady at 6.4%. Analysts had forecasted job gains of around 15,000, after 75,100 additions in July.
The Canadian dollar traded down 0.51% to C$1.3860 against the US dollar. Most of the job losses were observed in full-time employment, where positions shrank by 35,900, while part-time employment also saw reductions of 5,800 jobs.
Trade tensions between Canada and the US remain a concern, with US President Donald Trump's new 50% tariffs set to take effect early next week. This could lead to another wave of layoffs in trade-exposed sectors, according to Royce Mendes, head of macro strategy at Desjardins.
Statistics Canada noted that recent hiring figures have been influenced by temporary factors such as census-related employment and jobs associated with the soccer World Cup. The service-producing industries, which employ four out of every five people in the labor force, bore the brunt of the employment decline.