Canada Lost 42,000 Jobs in August: StatCan

The Canadian economy shed 42,000 jobs in August, according to Statistics Canada, contrary to earlier projections by some economists.

The statistics agency said on Sept. 4 that the number of government workers fell by 20,000, declining for a third consecutive month, while the number of private sector jobs remained relatively unchanged.

Employment declined by 20,000 jobs in business, building and other support services, 8,800 in public administration, 7,700 in natural resources, and 5,600 in utilities. Canada added 22,000 manufacturing jobs, with most of the increase occurring in Ontario.

The latest figures came in below economists’ projections. A Reuters poll of economists had forecast a gain of 15,000 jobs in August, while RBC Economics had projected an increase of 5,000.

The unemployment rate remained unchanged at 6.4 percent, after declining by a cumulative 0.5 percentage points in May, June, and July. The unemployment rate rose by 0.2 percentage points among core-aged men to 6 percent and fell by 0.2 percentage points among core-aged women to 5 percent.

The unemployment rate remained at 12.9 percent for youth and 5.1 percent for Canadians aged 55 and older. The employment rate fell by 0.1 percentage points to 60.8 percent.

Quebec was hardest hit, losing 19,000 jobs, while Ontario followed with a loss of 18,000. Employment increased by 2,400 in New Brunswick and changed little in the other provinces.

The Canadian economy had added 75,000 jobs in July and 18,000 jobs in June, according to StatCan.

The agency said many industries dependent on U.S. demand for exports “continue to face an uncertain economic context” due to tariffs. StatCan said the layoff rate over the past year was 0.9 percent for workers in industries dependent on U.S. export demand, compared with 0.7 percent for workers in other industries.

The latest jobs report comes as trade tensions between Canada and the United States have escalated, with Washington imposing 50 percent tariffs on $27.6 billion worth of Canadian goods on Aug. 22, and Ottawa intending to impose dollar-for-dollar, rate-for-rate counter-tariffs on $27.6 billion worth of U.S. imports starting on Sept. 8.

Since early 2025, the United States has also imposed tariffs on Canadian automobiles and auto parts, steel, aluminum, copper, and lumber.

Conservative Leader Pierre Poilievre said on Sept. 4 that he attributed the job losses to what he described as the Liberal government’s “high taxes, red tape, and more bureaucracy.” Conservative MP Garnett Genuis said the employment figures were based on data collected before trade talks between Ottawa and Washington broke down, arguing that the losses therefore could not be attributed to the United States.

StatCan reported on Aug. 28 that the Canadian economy grew by 3.3 percent at an annualized rate in the second quarter, or 0.8 percent compared with the first quarter. The agency said the growth was led by higher exports, household spending, and business capital investment, with increased exports of passenger cars, light trucks, and energy products contributing to the increase.

Finance Minister François-Philippe Champagne said on Aug. 28 that the GDP figures showed that the government’s plan “is working” and said Canada had “the strongest growth in the G7.”