Canada Economic Indicators
Canada's Labour Force Survey for August 2025
Canada's labour market showed continued softening in August 2025, with employment declining by 66,000 jobs (-0.3%), primarily driven by a drop in part-time work (-49,000). This marks the second consecutive monthly decline, reversing earlier gains and contributing to a net loss of 39,000 jobs since January 2025. The employment rate fell 0.2 percentage points to 60.5%, continuing a downward trend of 0.6 points year-to-date.
The unemployment rate rose 0.2 points to 7.1%, the highest since September 2016 (excluding pandemic years), reflecting weaker job demand amid slowing labour force growth. Core-aged workers (25-54) bore the brunt, with men losing 58,000 jobs (-0.8%) and women 35,000 (-0.5%). Youth (15-24) and older workers (55+) saw little change.
Sector losses were widespread, led by professional, scientific, and technical services (-26,000; -1.3%), transportation and warehousing (-23,000; -2.1%), and manufacturing (-19,000; -1.0%). Construction provided a bright spot, adding 17,000 jobs (+1.1%). Provincially, declines were notable in Ontario (-26,000; -0.3%), British Columbia (-16,000; -0.5%), and Alberta (-14,000; -0.6%), with Southern Ontario regions like Windsor (11.1% unemployment) and Oshawa (9.0%) hit hard by trade uncertainties and tariffs on exports.
Average hourly wages grew 3.2% year-over-year to $36.14, down slightly from 3.3% in July, signaling moderating pressure on inflation. Total hours worked were little changed month-over-month but up modestly year-over-year.
This report underscores an "excess supply of labour," aligning with the Bank of Canada's recent assessments and raising expectations for further interest rate cuts, potentially as soon as September, to support economic activity amid global trade headwinds.
Canadian Economy Shrinks 1.6% as Trade War Crushes Exports [Bloomberg]
Europe’s biggest battery hope Northvolt files for bankruptcy in Sweden [AFR]
Canadian Real Estate Is Crashing At One of The Fastest Rates Ever [Better Dwelling]
Toronto condo market is in ‘free fall,’ federal housing minister says [The Star]
Canadian pension funds are some of the biggest in the world but now they're a bit smaller
Ontario Public Pension Fund (IMCO)- approximately $550 million
CAD Ontario municipal pension fund (OMERS) - Undisclosed exact amount, estimated to be 200M+
Government of Quebec - $270 million CAD
Quebec Public Pension Fund Manager - $200 million
CAD CPP Investments - $55M
Quebec declares Northvolt battery plant partnership dead, loses $270M investment [CBC]