Unemployment Rate Rises to 7.1% in August as Canada Loses 66,000 Jobs

OTTAWA — The unemployment rate in Canada increased to 7.1 percent in August 2025, reflecting a loss of 66,000 jobs for the month, according to Statistics Canada. This rise marks a notable shift from the previous month, when the unemployment rate stood at 6.9 percent following the loss of 41,000 jobs in July.

Prior to the release of this report, economists had anticipated a modest gain of 10,000 jobs for August, predicting the unemployment rate would reach 7 percent, as per data from LSEG Data & Analytics. The latest figures indicate a troubling trend, as 60,000 part-time jobs were lost, alongside a reduction of 6,000 full-time positions.

Sector-Specific Job Losses

Employment declines were widespread across various industries. The professional, scientific and technical services industry experienced a significant reduction, losing 26,000 jobs. Similarly, the transportation and warehousing sector saw a decrease of 23,000 positions. In contrast, the construction industry reported a rise, adding 17,000 jobs during the same period.

This latest jobs report is particularly relevant as it precedes the upcoming decision by the Bank of Canada regarding interest rates, which is scheduled for September 17, 2025. Analysts will be closely monitoring these figures, as they may influence the central bank’s monetary policy in response to the current economic landscape.

The recent labor market trends highlight ongoing challenges within the Canadian economy. With the unemployment rate reaching levels not seen in recent months, policymakers and economic experts are tasked with evaluating the implications of these changes. The report, originally published by The Canadian Press on September 5, 2025, serves as a critical indicator of the nation’s economic health moving forward.