OTTAWA – The Canadian economy lost jobs for the second month in a row as the unemployment rate climbed to its highest level since May 2016, excluding the pandemic period.
Statistics Canada said Friday the unemployment rate ticked up to 7.1 per cent in August, its highest level since August 2021, as the economy lost 66,000 jobs for the month.
The report follows the July labour force survey that showed a loss of 41,000 jobs and an unemployment rate of 6.9 per cent.
A poll of economists heading into the release had expected August to show a gain of 10,000 jobs and the unemployment rate to rise to seven per cent for the month, according to LSEG Data & Analytics.
Statistics Canada said there were 60,000 part-time jobs lost in August, while the economy shed 6,000 full-time jobs.
Employment fell across several industries in August.
The professional, scientific and technical services industry lost 26,000 jobs, while transportation and warehousing lost 23,000 positions and the manufacturing sector lost 19,000 jobs.
The construction industry added 17,000 jobs.
Average hourly wages rose 3.2 per cent on a year-over-year basis in August, following a year-over-year gain of 3.3 per cent in July.
The jobs report comes ahead of the Bank of Canada’s next interest rate decision set for Sept. 17.
This report by The Canadian Press was first published Sept. 5, 2025.
