Unemployment rate climbed to 7.1 per cent in August as the economy lost 66,000 jobs
The Canadian economy lost jobs for the second month in a row and the unemployment rate climbed to its highest level since May 2016, excluding the pandemic period, Statistics Canada reported on Friday.
The weaker-than-expected reading of the labour market prompted financial markets to increase the odds the Bank of Canada will cut its key interest rate target later this month.
The unemployment rate ticked up to 7.1 per cent in August as the economy lost 66,000 jobs for the month. The monthly jobs report comes after the July labour force survey that showed a loss of 41,000 jobs and an unemployment rate of 6.9 per cent.
A poll of economists heading into the release had expected August to show a gain of 10,000 jobs and the unemployment rate to rise to seven per cent for the month, according to LSEG Data & Analytics.
