Economics

Canada Sheds Jobs for Third Month, Unemployment Rate Jumps to 5.4%

  • Economy unexpectedly loses 39,700 positions in August
  • Data may be early signal higher rates are starting to bite

Canada’s cumulative employment drop since May is now 114,000, suggesting that hiring activities may be moderating.

Photographer: Shannon VanRaes/Bloomberg
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Canadian employment levels unexpectedly fell for a third straight month in August and the jobless rate jumped, a potential signal interest-rate hikes have started to cool the tight labor market.

The economy shed 39,700 jobsBloomberg Terminal last month, Statistics Canada reported on Friday in Ottawa, a surprise negative reading compared to the 15,000 gain anticipated by economists in a Bloomberg survey.