Canada jobs August 2026 data showed a sharp reversal in the labour market, with employment falling by 42,000 jobs after a strong gain of 75,000 in July. Canada’s unemployment rate held at 6.4%, while the employment rate slipped to 60.8% and labour force participation fell to 65.0%.
The report also showed slower wage growth, adding to signs that labour market pressure is easing.
Canada Jobs August 2026 Reverse July’s Strong Gain
The Canada jobs August 2026 report suggests the labour market cooled after July’s stronger hiring data.
Employment fell by 42,000, or 0.2%, in August after rising by 75,000 in July.
- July: +75,000 jobs
- August: -42,000 jobs
- Unemployment rate: 6.4% in both months
Even after August’s decline, employment remained 217,000 jobs, or 1.0%, higher than a year earlier.
Wage Growth Cools From 2.8% to 2.0%
Average hourly wages rose 2.0% year over year to $37.02, slowing from 2.8% in July and 3.3% in June.
The slowdown matters for the Bank of Canada because persistent wage growth can add to services inflation pressure.
Manufacturing Adds Jobs as Other Industries Weaken
Employment fell in several areas, including:
- Business, building and other support services: -20,000
- Public administration: -8,800
- Natural resources: -7,700
Manufacturing was the main bright spot, adding 22,000 jobs, including about 14,000 in Ontario.
Public-sector employment also fell by 20,000, its third consecutive monthly decline.
Unemployment Holds at 6.4%
The unemployment rate remained at 6.4%, partly as labour force participation fell to 65.0%.
About 1.5 million Canadians were unemployed in August.
Youth employment fell by 19,000, while the youth unemployment rate edged up to 12.9% from 12.6% in July.
Ontario and Quebec Lead August Declines
Employment fell by 19,000 in Quebec and 18,000 in Ontario.
Quebec’s unemployment rate remained at 5.6%, while Ontario’s edged up to 6.9%.
A New Labour Signal for the Bank of Canada
August gave the Bank of Canada a softer labour-market signal than July.
Employment swung from a 75,000 gain to a 42,000 loss, while wage growth slowed from 2.8% to 2.0%. Unemployment held at 6.4%.
The data point to a cooling labour market, with weaker hiring and slower wage growth giving the Bank of Canada a softer labour-market signal ahead of future rate decisions.
Source: Statistics Canada Labour Force Survey, August 2026
