Canada’s Unemployment Rate Rises in August Amid Slow Job Market
Canada saw a rise in its unemployment rate in August, reaching 6.6%, as students faced a challenging summer job market. According to recent data, the country added only 22,000 jobs during the month, not enough to keep up with population growth.
The most significant employment gains were seen in sectors such as education, healthcare, and finance, while industries like professional services and natural resources experienced declines.
The youth unemployment rate was particularly high, with students facing the toughest summer job market since 2012, excluding the pandemic period. The overall student unemployment rate reached 16.7%, with even higher rates for Black, Chinese, and South Asian students.
Despite the slow hiring pace, workers with jobs saw a 5% increase in wages from last year, with average hourly earnings reaching $35.16. However, wage growth for recent immigrants has lagged behind, with wages for those who arrived in the last five years seeing a decrease.
As the Bank of Canada recently cut interest rates for the third consecutive time, the economic outlook remains cautious, with the central bank aiming to spur growth in the coming months.