Economy Slips 42,000 Jobs in August Amid Unchanged Unemployment Rate

Statistics Canada released its latest employment numbers for August, revealing that the economy shed 42,000 jobs, falling short of economists' expectations. The unemployment rate remains unchanged at 6.4 percent.

The manufacturing industry was a surprise pocket of strength in August, adding 22,000 jobs despite being hit hard by US tariffs. However, the public sector saw declines for the third consecutive month, with 20,000 fewer people employed.

According to StatCan, the share of people who were unemployed due to layoffs decreased from a year ago but remains higher in industries reliant on US demand for exports. Average hourly wages cooled to a two percent annual increase in August, down from 2.8 percent in July.