Sunday, September 7, 2025

Canada’s Unemployment Rate Rises to 6.6% in August Amid Mixed Job Market

Canada’s unemployment rate climbed to 6.6% in August, marking the highest level since May 2017 outside of the pandemic years, Statistics Canada reported on Friday. The increase comes despite a modest gain of 22,000 jobs, highlighting the ongoing challenges in the labor market.

The employment rate decreased by 0.1 percentage points to 60.8%, continuing a downward trend observed in recent months. While part-time work saw an increase of 66,000 positions, full-time employment declined by 44,000, resulting in little overall change for the fourth consecutive month.

Sector-specific performance was mixed, with educational services adding 27,000 jobs and health care and social assistance gaining 25,000. However, these gains were partially offset by losses in other sectors, including professional, scientific and technical services, which shed 16,000 jobs.

The summer job market proved particularly challenging for students, with the unemployment rate for returning students aged 15 to 24 reaching 16.7%, the highest since 2012 excluding the pandemic year of 2020. The situation was even more dire for racialized groups, with Black returning students facing a 29.5% unemployment rate.

On a positive note, average hourly wages rose by 5.0% year-over-year to $35.16, though this growth rate was slightly lower than July’s 5.2% increase.

The rising unemployment rate, coupled with modest job gains, suggests a cooling labor market as Canada grapples with economic headwinds. This data comes just days after the Bank of Canada’s decision to cut interest rates, reflecting ongoing efforts to balance economic growth with inflationary pressures.


Information for this story was found via Statistics Canada, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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