Canada August Employment Falls by 42,000, Unemployment Rate Steady at 6.4%
Macro
According to employment statistics released by Statistics Canada on the 4th, the number of employed persons in August decreased by 41,700, falling short of market expectations of an increase of approximately 15,000. In July, employment had risen by 75,100. The unemployment rate remained unchanged at 6.4%, in line with expectations. From April to July, employment had increased by a total of 181,000, supported by temporary factors related to the FIFA World Cup and the census, but trade friction stemming from new U.S. tariffs and Canada's retaliatory measures coming into effect is cited as a downside risk. In August, full-time employment decreased by 35,900, part-time employment by 5,800, and the service industry saw a decline of 51,500 jobs. The unemployment rate for youth rose by 0.3 percentage points to 12.9%, pausing the improvement trend seen from April to July. The year-over-year growth rate of average hourly wages for permanent employees was 2%, down from the previous month, marking the lowest level in over seven years excluding the COVID-19 pandemic period.
