Canada’s unemployment rate climbed to 7.1 per cent in August as the economy lost 66,000 jobs, according to Statistics Canada. The increase followed a July decline of 41,000 jobs, when the unemployment rate stood at 6.9 per cent.
Economists had expected a modest gain of 10,000 positions and a slight uptick in the jobless rate to seven per cent, but the report instead pointed to widespread losses. The bulk of the decline came from part-time work, with 60,000 positions lost, while 6,000 full-time jobs also disappeared.
Employment dropped sharply in professional, scientific and technical services, which shed 26,000 positions, and in transportation and warehousing, which lost 23,000 jobs. Construction, however, bucked the trend with a gain of 17,000 workers.
The disappointing figures add new pressure ahead of the Bank of Canada’s upcoming interest rate decision on September 17, as policymakers weigh the balance between taming inflation and supporting an economy showing fresh signs of weakness.