Canada’s labor market weakened further in August, with employment falling by -65.5k, far below expectations of 4.9k gain. This marked the second consecutive monthly contraction, driven almost entirely by a sharp -60k drop in part-time jobs, while full-time employment was little changed.
Unemployment rate climbed to 7.1% from 6.9%, above expectations, marking the highest level since May 2016 outside the pandemic years. Both the employment rate and participation rate slipped, falling to 60.5% and 65.1%.
Wage growth offered little relief, with average hourly earnings rising 3.2% yoy, slightly slower than July’s 3.3% yoy.
