Canada Jobless Rate at 4-Year High

2025-09-05 12:39 By Felipe Alarcon 1 min. read

The unemployment rate in Canada rose 0.2 percentage points to 7.1% in August 2025, the highest level in four years, above market expectations of 7% and higher than the 6.9% recorded in July.

This was in line with the Bank of Canada's assessment that a large supply of labor and increasing growth concerns due to tariffs and uncertain economic policy from the US threatened further deterioration in the domestic labor backdrop.

The number of unemployed people increased to about 1.595 million.

This coincided with a 66,000 drop in net employment, extending the 41,000 decrease in July, as the participation rate fell by 0.1 percentage points to 65.1%.

In turn, youth unemployment remained elevated at 14.5%, largely due to slow hiring for seasonal summer jobs.



News Stream
Canada Jobless Rate Rebounds From 16-Month Low
The unemployment rate in Canada rose to 6.7% in February 2026 from the lowest in sixteen months of 6.5% in the previous month and above the expected 6.6% increase, reflecting an increment in the number of people searching for work and a contraction in employment. The increase followed the prior month's decline and reflected a 56,700 rise in the number of unemployed to over 1.51 million. The labour force contracted by roughly 27,200, pushing the participation rate down to 64.9% from 65.0%. Net employment fell by 84,000 to 21.04 million, continuing the recent downward trend. Losses were driven by a 108,000 decline in full-time employment, partly offset by a 24,500 increase in part-time work.
2026-03-13
Canada Jobless Rate Drops to 16-Month Low
The unemployment rate in Canada fell to 6.5% in January 2026 from 6.8% in the previous month, undershooting market expectations of 6.8% and marking the lowest level in 16 months, as fewer people searched for work. The decline marked a partial reversal of the prior month’s increase and reflected a 94,000 drop in the number of unemployed to around 1.5 million. The labour force contracted by roughly 94,000, pushing the participation rate down to 65.0% from 65.4%. Net employment fell by 25,000 to 21.12 million, interrupting the recent run of gains. Losses were driven by a 70,000 decline in part-time employment, partly offset by a 45,000 increase in full-time work.
2026-02-06
Canada Unemployment Rate Edges Higher
The unemployment rate in Canada rose to 6.8% in December 2025 from 6.5% in the previous month and above market expectations of 6.6%, as more people entered the job market in search of work. The uptick partially reversed a cumulative 0.6-percentage-point decline recorded over the prior two months. The number of unemployed rose by 73,000 to 1.6 million, while the labor force increased by 81,000, pushing the participation rate up to 65.4%. Net employment rose by 8,200 to 21.14 million, marking a fourth consecutive month of improvement. Gains were driven by a 50,200 increase in full-time employment, offset by a 42,000 decline in part-time work.
2026-01-09