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Job Losses Challenge Canada’s Growth Narrative
Jobs market sees unexpected setback. Canada’s labour market weakened in August, with employment falling by 42,000 positions, partially offsetting the 181,000 jobs added between May and July. Losses were concentrated in full-time employment and the services sector. At the same time, the unemployment rate held at 6.4 per cent as labour force participation fell to 65 per cent. Annual wage growth also slowed considerably to 2 per cent, down from 2.8 per cent in July. Despite the disappointing headline, employment remains higher year to date and total hours worked increased another 0.6 per cent in August. Slower population growth and rising retirements are also constraining labour force expansion, suggesting job growth will likely remain modest even as broader economic conditions improve.