Canada’s labour market continues to cool as the unemployment rate reached 6.6% in August, the highest since May 2017 (excluding pandemic years). Here’s a quick look at the key takeaways:

Job Growth: Despite a gain of 22,000 net jobs, full-time employment declined while part-time positions grew. The unemployment rate among students returning to school hit 16.7%, the highest since 2012.

 Sector Growth: The health-care and social assistance sector saw the most growth, adding 157,000 jobs over the past year. However, losses were noted in professional, scientific, and technical services.

Wages: Average hourly wages rose by 5.0% in August, down slightly from the previous month’s 5.2%.

Interest Rate Cuts: With rising unemployment, economists are questioning if the Bank of Canada should cut interest rates more aggressively. Some predict two more rate cuts by the end of the year as inflation continues to cool.

 Economic Outlook: As the labour market weakens, economists warn that the jobless rate could reach 7%, particularly in Ontario and Alberta. The Bank of Canada may consider larger rate cuts depending on future economic data.

Stay tuned for updates on Canada’s economy as we approach the next interest rate decision in October.