Canada economy loses 42,000 jobs

Canada's economy shed 42,000 jobs in August, a significant reversal after months of strong employment gains and a sign of a slowing labor market. The unemployment rate held steady at 6.4 percent, as economists had widely anticipated job growth of around 15,000 for the month. The decline in August erased gains made between April and July, when the country added 181,000 positions. Employment fell across several sectors, with the public sector experiencing its third consecutive monthly decline, losing 20,000 jobs. Other sectors reporting job losses included business, building and other support services, public administration, natural resources, and utilities. Manufacturing was a notable exception, adding approximately 22,000 jobs, with most of these gains concentrated in Ontario. Despite the overall job losses, the broader trend in the job market shows the economy chugging along, with total employment still up 217,000 from a year earlier. Average hourly wage growth also decelerated sharply, increasing by just 2 percent year-over-year. This marks the weakest annual increase since November 2017, excluding pandemic-affected periods, and is below economists' expectations.