Canada: Ugly Job Losses Signal Slowdown

Net total Canadian employment fell by 40k in August 2022—the third consecutive monthly decline. More and deeper job losses—increasingly concentrated in full-time positions—combined with continued weakness in labour force participation and hours worked suggest that a Canadian economic slowdown is underway. The weakness of today’s data likely means the Bank will be debating between the merits of a 25bp or 50bp rate hike in October rather than the more aggressive moves made in recent meetings.