Statistics Canada’s latest monthly review of the labour market found that employment was little changed in August from the previous month. That caused the unemployment rate to increase to its highest level since May 2017, outside the COVID-19 pandemic, as a growing number of people who would like to work struggled to find jobs. (The Logic) 

Talking point: Higher interest rates are catching up with Canada’s economy. Steady employment is a sign of resilience, but the country needs accelerated hiring to keep up with elevated levels of population growth. The employment rate, which measures the percentage of the working age population that’s employed, dropped to 60.8 per cent, the fourth consecutive decline and the 10th in the last 11 months. Meanwhile, the ranks of the unemployed rose to 1.5 million in August, an increase of almost 23 per cent from a year earlier. Average hourly wages were five per cent higher than August 2023, down from 5.2 per cent last month. That suggests less upward pressure on inflation, clearing the way for the Bank of Canada to jolt hiring by cutting interest rates.