Statistics Canada (StatsCan) reported on 5/9 that the Canadian economy has experienced job losses for two consecutive months. The July labor force survey revealed a decline of 41,000 jobs, bringing the unemployment rate to 6.9%.
Analysts had predicted 10,000 new jobs in August, but the month saw a loss of 66,000 jobs. This pushed the unemployment rate to 7.1%, the highest since August 2021 and the highest since 2016, excluding the Covid-19 pandemic period.
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Workers at a factory in Woodbridge, Ontario, on 3/2. Photo: Canadian Press |
Workers at a factory in Woodbridge, Ontario, on 3/2. Photo: Canadian Press
Almost 90% of the jobs lost in August were part-time positions, primarily due to reduced hiring and layoffs at companies, StatsCan reported.
The construction sector added 17,000 jobs, while the science and technology sectors lost 26,000 jobs. The transportation and warehousing sector lost 23,000 positions, and the manufacturing sector lost 19,000.
According to StatsCan, the majority of job losses were among core workers aged 25-54. Employment among younger workers (15-24) remained relatively stable.
Pedro Antunes, an economist at The Conference Board of Canada, an independent research organization, said the figures are generally bad news for the Canadian economy. The job losses in August were primarily among core workers.
Canada is facing challenges due to tariffs imposed by the US. Earlier this year, US President Donald Trump signed an executive order imposing import tariffs on all Canadian goods. Canadian energy products face a 10% tariff, while other products are subject to a 25% tariff.
Canada retaliated with tariffs on 45.9 billion USD worth of US goods in March and April. In July, Trump announced plans to increase tariffs on Canadian goods to 35%. On 22/8, Canadian Prime Minister Mark Carney announced the removal of most retaliatory tariffs against the US, but maintained tariffs on 46 billion Canadian dollars' worth of goods, including automobiles, aluminum, and steel.
Duc Trung (Toronto Star, CBC)
