FX.co ★ Canada Employment Unexpectedly Declines

Canada shed 41,700 jobs in August 2026, defying expectations for a gain of 15,000 and reversing part of the 75,100 increase recorded in July. Employment declined in business, building and other support services (-2.8%), public administration (-0.7%), natural resources (-2.3%), and utilities (-3.5%), while manufacturing employment rose 1.2%.

By province, employment fell in Quebec (-0.4%) and edged lower in Ontario (-0.2%), increased in New Brunswick (0.6%), and was little changed in the remaining provinces. By age group, employment declined among youth aged 15 to 24 (-0.7%) and slipped among core-age workers 25 to 54 (-0.1%).

Public-sector employment fell 0.4%, its third consecutive monthly decline, whereas private-sector employment was largely unchanged. The employment rate eased by 0.1 percentage point to 60.8%. On a year-on-year basis, employment in August was up by 217,000.