Summary
Canada's unemployment rate went up to 7.1% in August, reaching its highest point since May 2016 (excluding the pandemic years), with 1.6 million people unemployed. The country lost 65,500 jobs, primarily in part-time positions, due to impacts from trade tariffs and economic uncertainty. The employment rate dropped to its lowest since the pandemic, significantly affecting industries like transportation, warehousing, and manufacturing.
Key Facts
- Canada's unemployment rate increased to 7.1% in August 2023.
- Around 1.6 million Canadians were unemployed during this period.
- The country lost 65,500 jobs in August, mainly part-time roles.
- Trade tariffs, especially from the US, have impacted Canada's economy.
- The job loss was heaviest in transportation, manufacturing, and technical services.
- Analysts expected 10,000 job gains, but instead saw losses.
- The employment rate dropped to 60.5%, the lowest since the pandemic.
- Financial markets expect a possible interest rate cut due to these economic indicators.
