Canada’s labour market saw a sharp decline in August 2025, losing 65,500 net jobs—mainly part-time—pushing the national unemployment rate up to 7.1%, according to Statistics Canada. This marks a continuing trend after a 40,800 job loss in July and reflects growing weakness in the services sector.

Most of August’s job losses came from professional, scientific, technical services, transportation, and warehousing—sectors that are often sensitive to economic shifts. Meanwhile, the goods-producing sector showed modest gains, adding 1,700 jobs, primarily in construction.

Notably, full-time employment declined by 6,000 jobs, while part-time jobs plummeted by nearly 60,000. The labour force participation rate dipped slightly to 65.1%, and average hourly wages for permanent employees rose 3.6% year-over-year to $37.81.

The data underscores growing concerns in Canada’s job market, particularly as more companies—such as Imperial Oil, Starbucks, and Exxon—announce layoffs or restructuring plans. For Canadian workers, especially in urban and service-based economies, this signals increasing difficulty in finding stable employment. With inflation pressures easing but growth slowing, policymakers and job seekers alike face a challenging economic environment heading into 2026.

Have you been laid off in Canada? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.

Reuters’ original article, “Canada loses net 65,500 jobs in August, jobless rate rises to 7.1%” was published in Reuters on September 5, 2025. Read the Full Reuters News story.