Canada’s unemployment rate rose to 6.6% in August, reaching its highest level in seven years outside of the pandemic era. The increase underscores growing economic challenges, with high interest rates continuing to exert pressure on the economy.
While earlier in the year there was notable growth, it was primarily driven by a rising population rather than a corresponding increase in GDP. This mismatch between economic growth and labor market conditions has led to a gradual rise in the unemployment rate.
Since January 2023, the unemployment rate has climbed by 1.6 percentage points, reflecting the broader impact of current economic conditions on the job market.
