Canada’s unemployment rate unexpectedly jumps to 5.4% as economy loses more jobs

OTTAWA (Reuters) – Canada’s economy suffered a third straight month of unemployment in August, with the unemployment rate unexpectedly jumping to 5.4 percent, Statistics Canada data showed on Friday.

The economy lost 39,700 net jobs in August, missing analyst forecasts to add 15,000. The unemployment rate also fell short of expectations, with analysts expecting him to rise slightly to 5.0% from a record low of 4.9% in July.

Overall, Canada lost a net 113,500 jobs in the last three months. Most of them are full-time jobs. Despite this decline, Statscan said full-time employment remains 3.9% higher than a year ago.

Wages increased 5.6% in August from 5.4% in July, and more people said they plan to leave their current jobs within the next 12 months.

Employment declined in August, mainly among young women and people aged 55 to 64. With 66,200 people joining the workforce, the overall participation rate he rose to 64.8%.

The Bank of Canada raised its policy rate to a 14-year high of 3.25% on Wednesday, signaling further tightening as it battles inflation near a 40-year high.read more

After the data, the Canadian dollar regained some of its previous gains. The US dollar was trading 0.4% higher at 1.3035 or 76.72 cents.

Reporting by Julie Gordon, Ottawa; additional reporting by Dale Smith, Ottawa and Fergal Smith, Toronto Editing by Tomasz Janowski

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