Canada Jobless Rate Drops to New 2008 Low of 6.2%


The unemployment rate in Canada fell to 6.2 percent in August of 2017 from 6.3 percent in July, beating market expectations of 6.3 percent. It reached a new low since October of 2008, the month prior to the 2008-2009 labour-market downturn. The economy added 22 thousand jobs, as more people were working in finance, insurance, real estate, rental and leasing as well as in transportation and warehousing.

An increase in the number of people working part time (+110,000) was mostly offset by a decline in the number of people employed full time (-88,000). While the increase in part-time employment was spread across the age groups, most of the decrease in full-time employment occurred for youth aged 15 to 24. The overall employment decline for youth was accompanied by a notable decrease in their labour force participation.

In the 12 months to August, employment rose by 374,000 (+2.1%), with gains in both full-time (+213,000 or +1.5%) and part-time work (+161,000 or +4.6%). Over this period, the number of hours worked increased by 2.2%.

Provincially, Ontario was the lone province with a notable employment gain in August. Employment declined in Nova Scotia and was little changed in the other provinces.

In August, more people were working in finance, insurance, real estate, rental and leasing as well as in transportation and warehousing. At the same time, employment fell in manufacturing, in the "other services" industry and in natural resources.

There were more self-employed workers in August, while the number of employees was little changed in both the private and public sectors.

Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
9/8/2017 12:34:05 PM