FX.co ★ Canada Jobless Rate at 4-Year High

In August 2025, Canada's unemployment rate escalated by 0.2 percentage points, reaching 7.1%, marking the highest figure in four years. This surpassed market forecasts set at 7% and exceeded the 6.9% recorded the previous month in July. The figures align with the Bank of Canada's observations, which highlighted a substantial labor supply and mounting growth worries stemming from tariffs and the unpredictable economic policies of the United States as factors that could further undermine the domestic labor market. The count of unemployed individuals increased to approximately 1.595 million. Meanwhile, there was a notable decline in net employment, with a reduction of 66,000 jobs, following a decrease of 41,000 in July. Concurrently, the participation rate dipped by 0.1 percentage points to 65.1%. Youth unemployment remains significantly high at 14.5%, largely attributable to the sluggish pace of hiring for seasonal summer positions.