The unemployment rate rose to 7.1 per cent in August — nearly the highest rate since 2016 — while the Canadian economy lost 66,000 jobs, according to new data from Statistics Canada.
After the unemployment rate held steady in July at 6.9 per cent, it increased again last month, making it the highest the unemployment rate has been (excluding pandemic highs) since May 2016.
The employment rate has been falling consistently this year, down from a 6.6 per cent rate in January.
Of the jobs lost, Statistics Canada says most — some 60,000 — were part-time ones, while there was little change in the number of full-time jobs.
Most of the jobs lost were also among workers between 25 to 54 years old, with little change in youth employment, according to StatsCan.
Employment also fell across a number of industries, including some hit by tariffs. In particular, the scientific and technical services sector lost 26,000 jobs, while transportation and warehousing dropped 23,000 and manufacturing bled 19,000.
Construction, on the other hand, made gains, adding 17,000 new roles.
This comes after the economy lost a total of 41,000 jobs last month.
The figures are more dire than some had predicted — a Reuters poll of economists ahead of the release predicted a gain of 10,000 jobs and for the unemployment rate to rise to seven per cent.