Ottawa, September 7 (FinanceFlashNews) – Canada’s unemployment rate climbed to 6.6% in August 2024, marking the highest level in more than seven years, excluding the COVID-19 period. This data, released by Statistics Canada, was reported by AFP.
The unemployment rate increased by 0.2 percentage points from the previous month. This is the highest level since May 2017, apart from the pandemic years of 2020 and 2021 when unemployment surged due to COVID-19-related restrictions.
Despite the rise in unemployment, the creation of new jobs has remained steady for the fourth consecutive month. However, rapid population growth has outpaced the labor market’s ability to absorb new job seekers. Royce Mendes, from financial firm Desjardins, noted, “August’s job creation was insufficient to prevent the rise in unemployment.”
Analysts believe the recent unemployment trend may push the central bank to continue cutting interest rates. Since June, the bank has lowered rates three times, with the most recent cut of 25 basis points, bringing the key rate down to 4.25% this week.
Canada’s Unemployment Rate:
| Month | Unemployment Rate (%) |
|---|---|
| July 2024 | 6.4 % |
| August 2024 | 6.6 % |
| Highest since May 2017 | 6.6 % |
Keywords: Canada, unemployment rate, job creation, central bank, interest rates
