Canada employment falls by 41,700 in August, jobless rate holds at 6.4%

Canada’s labor market gave back a big chunk of its recent gains in August, shedding 41,700 jobs when economists had penciled in a modest increase of roughly 15,000. The unemployment rate held steady at 6.4%, unchanged from July’s two-year low, but the underlying details paint a picture of an economy losing momentum at exactly the wrong time. Statistics Canada’s Labour Force Survey, released September 4, landed like a cold shower after July’s strong showing of 75,100 new positions. Where the jobs disappeared The damage was concentrated in full-time work, which accounts for the bulk of household income and spending power. Full-time positions dropped by 35,900, while part-time roles fell by a comparatively modest 5,800. Manufacturing was a lonely bright spot, posting the only significant sectoral increase. The participation rate, which measures the share of working-age Canadians either employed or actively looking for work, slipped to 65.0% from 65.1%. That small decline matters because it means some people stopped searching altogether, which is the only reason the unemployment rate didn’t tick higher despite the job losses. Perhaps the most troubling signal came from wages. Average h...