Canada loses 39,700 jobs in August, unemployment rises to 5.4%

Canada loses 39,700 jobs in August, unemployment rises to 5.4%

A asking for help sign at a store along Queen Street West in Toronto, Ontario, Canada, June 10, 2022. REUTERS/Carlos Osorio

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TORONTO, Sept. 9 (Reuters) – The Canadian economy lost jobs for the third straight month in August, resulting in a net loss of 39,700 all-full-time jobs, Statistics Canada said Friday. The unemployment rate rose to 5.4%. Analysts polled by Reuters had expected an increase of 15,000 jobs in August.

Employment in the goods-producing sector fell by a net 13,900 jobs, mainly in construction. The services sector decreased by 25,800 net positions, mainly in educational services.

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STORY:

Link: https://www150.statcan.gc.ca/n1/daily-quotidien/220909/dq220909a-eng.htm

COMMENTARY

ANDREW GRANTHAM, SENIOR ECONOMIST, CIBC CAPITAL MARKETS

“Weak headline data may leave the Bank of Canada questioning its apparent commitment to even higher interest rates. However, with the decline in education employment likely to reverse, and with another Labor Force Survey ahead of the Bank’s October meeting, it appears still likely that at least one more rate hike is ahead before a break is seen.”

ANDREW KELVIN, CHIEF CANADA STRATEGIST, TD SECURITIES

“I think this can be taken as a reasonable indication that the economy is actually slowing down. Even if jobs had come in as expected, I don’t know if I would be exceptionally encouraged by that kind of number. If you look at the rise in the unemployment rate indicating that some slack in the labor market may be starting to return, although it is not a complete process and will be a slow one. up a bit here so I don’t know if you see any reprieve on the inflation front The BOC’s focus remains on getting inflation under control so I’m not doing it’ I don’t see them moderating their tone at all in response to those numbers.”

DEREK HOLT, VICE PRESIDENT OF THE CAPITAL MARKETS ECONOMY, SCOTIABANK

“I think the Bank (of Canada) will be more focused on the wage side of the picture – the modest acceleration we have there that’s going on. So I don’t think they’ll be overly alarmed by the weakening jobs reading .”

“I’m a little suspicious of some of the quality of the numbers… a 50k drop in education at this time of year and the concentration among young people suggests that at least some of this may have faded in terms of the job loss.”

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