Canada sheds 42,000 jobs in August, far below forecasts

Canada’s labor market lost about 42,000 jobs in August, sharply missing economists’ expectation of a 15,000-job gain and ending a streak of 181,000 positions added from April through July. The unemployment rate held at 6.4%, while annual wage growth slowed to 2%, its weakest pace since 2017. Losses were concentrated in business and support services, public administration, natural resources and utilities, with the public sector declining for a third consecutive month. Manufacturing provided a notable exception, adding 22,000 jobs nationally and in Ontario, although Ontario recorded an overall net loss of 18,000 positions. Youth employment fell by 19,000, while students nevertheless experienced a stronger summer job market than in 2025. Statistics Canada said industries dependent on U.S. export demand face heightened uncertainty as tariffs continue to weigh on Canadian businesses.