Canada loses 66,000 jobs in August: Here’s why the labour market is slowing down
Canada lost 66,000 jobs in August 2025, driven by a sharp decline in part-time work, pushing the unemployment rate to 7.1%—the highest since 2016, excluding pandemic years. Core-aged workers were hit hardest, with notable losses in manufacturing, tech, and transport sectors. Youth unemployment remained elevated, particularly among returning students. Ontario led provincial declines. Wage growth continued modestly, but underemployment and job scarcity persist, signalling a cooling labour market despite rising average wages.
Canada lost 66,000 jobs in August 2025, driven by a sharp decline in part-time work, pushing the unemployment rate to 7.1%—the highest since 2016, excluding pandemic years. Core-aged workers were hit hardest, with notable losses in manufacturing, tech, and transport sectors. Youth unemployment remained elevated, particularly among returning students. Ontario led provincial declines. Wage growth continued modestly, but underemployment and job scarcity persist, signalling a cooling labour market despite rising average wages.
