In August, Canada's economy added 22,000 jobs, but the unemployment rate rose to 6.6%, the highest level since 2017.

This is attributed to hiring not keeping pace with population growth. The total number of unemployed Canadians rose to 1.5 million, an increase of 272,000 from the previous year. The labor force grew by 82,500 from July to August and was up 2.8% compared to last year. The gains were made in part-time work, but offset by losses in full-time work. Private-sector employment rose for the first time since April, while public-sector employment remained unchanged. The employment rate decreased to 60.8% in August. The youth unemployment rate rose to 14.5%, the highest level since 2012. Only 16.7% of those who were unemployed in July were able to find employment in August, indicating a challenging job market.

The sectors with the largest employment gains were educational services and health care and social assistance, while employment fell the most in personal and repair services. Average hourly wages rose by five percent compared to the previous year, and total hours worked dropped by 0.1% compared to July. Economists predict two more cuts to the policy rate by the end of the year, with the likelihood of a deeper cut in October becoming more likely. The drop in hours worked suggests that overall activity remained soft in August, reinforcing the downside risk to the Bank of Canada’s third-quarter GDP growth forecasts.

Source: https://financialpost.com/news/economy/canada-gains-jobs-unemployment-rate-rises#:~:text=Article%20content,keeping%20pace%20with%20population%20growth.