Canada's Unemployment Rate Hits 7-Year High

In August, Canada's unemployment rate rose to 6.6%, its highest since May 2017, despite adding 22,000 jobs. The increase, driven by declines in full-time positions, reflects a cooling labor market and raises questions about the pace of Bank of Canada interest rate cuts. Student unemployment hit 16.7%, the highest since 2012 (excluding the pandemic). The Bank of Canada’s recent rate cut may not be enough to counteract this trend.