AIRLINK 189.52 Decreased By ▼ -0.64 (-0.34%)
BOP 12.77 Decreased By ▼ -0.06 (-0.47%)
CNERGY 7.16 Decreased By ▼ -0.05 (-0.69%)
FCCL 42.12 Decreased By ▼ -1.29 (-2.97%)
FFL 15.54 Increased By ▲ 0.15 (0.97%)
FLYNG 25.19 Decreased By ▼ -1.18 (-4.47%)
HUBC 130.09 Decreased By ▼ -0.52 (-0.4%)
HUMNL 14.32 Increased By ▲ 0.48 (3.47%)
KEL 4.67 Decreased By ▼ -0.04 (-0.85%)
KOSM 6.51 Decreased By ▼ -0.19 (-2.84%)
MLCF 46.94 Decreased By ▼ -2.57 (-5.19%)
OGDC 202.75 Decreased By ▼ -2.06 (-1.01%)
PACE 6.44 Increased By ▲ 0.03 (0.47%)
PAEL 41.14 Increased By ▲ 0.33 (0.81%)
PIAHCLA 17.03 Increased By ▲ 0.18 (1.07%)
PIBTL 8.71 Increased By ▲ 0.02 (0.23%)
POWER 10.70 Decreased By ▼ -0.32 (-2.9%)
PPL 172.21 Decreased By ▼ -2.23 (-1.28%)
PRL 34.77 Increased By ▲ 0.06 (0.17%)
PTC 24.85 Decreased By ▼ -0.14 (-0.56%)
SEARL 96.72 Decreased By ▼ -1.27 (-1.3%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
SSGC 30.58 Decreased By ▼ -0.52 (-1.67%)
SYM 17.89 Increased By ▲ 0.08 (0.45%)
TELE 8.40 Increased By ▲ 0.10 (1.2%)
TPLP 11.89 Decreased By ▼ -0.29 (-2.38%)
TRG 63.35 Increased By ▲ 1.69 (2.74%)
WAVESAPP 11.63 Decreased By ▼ -0.04 (-0.34%)
WTL 1.50 Increased By ▲ 0.02 (1.35%)
YOUW 4.05 Decreased By ▼ -0.13 (-3.11%)
AIRLINK 189.52 Decreased By ▼ -0.64 (-0.34%)
BOP 12.77 Decreased By ▼ -0.06 (-0.47%)
CNERGY 7.16 Decreased By ▼ -0.05 (-0.69%)
FCCL 42.12 Decreased By ▼ -1.29 (-2.97%)
FFL 15.54 Increased By ▲ 0.15 (0.97%)
FLYNG 25.19 Decreased By ▼ -1.18 (-4.47%)
HUBC 130.09 Decreased By ▼ -0.52 (-0.4%)
HUMNL 14.32 Increased By ▲ 0.48 (3.47%)
KEL 4.67 Decreased By ▼ -0.04 (-0.85%)
KOSM 6.51 Decreased By ▼ -0.19 (-2.84%)
MLCF 46.94 Decreased By ▼ -2.57 (-5.19%)
OGDC 202.75 Decreased By ▼ -2.06 (-1.01%)
PACE 6.44 Increased By ▲ 0.03 (0.47%)
PAEL 41.14 Increased By ▲ 0.33 (0.81%)
PIAHCLA 17.03 Increased By ▲ 0.18 (1.07%)
PIBTL 8.71 Increased By ▲ 0.02 (0.23%)
POWER 10.70 Decreased By ▼ -0.32 (-2.9%)
PPL 172.21 Decreased By ▼ -2.23 (-1.28%)
PRL 34.77 Increased By ▲ 0.06 (0.17%)
PTC 24.85 Decreased By ▼ -0.14 (-0.56%)
SEARL 96.72 Decreased By ▼ -1.27 (-1.3%)
SILK 1.10 Increased By ▲ 0.01 (0.92%)
SSGC 30.58 Decreased By ▼ -0.52 (-1.67%)
SYM 17.89 Increased By ▲ 0.08 (0.45%)
TELE 8.40 Increased By ▲ 0.10 (1.2%)
TPLP 11.89 Decreased By ▼ -0.29 (-2.38%)
TRG 63.35 Increased By ▲ 1.69 (2.74%)
WAVESAPP 11.63 Decreased By ▼ -0.04 (-0.34%)
WTL 1.50 Increased By ▲ 0.02 (1.35%)
YOUW 4.05 Decreased By ▼ -0.13 (-3.11%)
BR100 11,865 Decreased By -96.2 (-0.8%)
BR30 35,321 Decreased By -314 (-0.88%)
KSE100 112,801 Decreased By -938.2 (-0.82%)
KSE30 35,036 Decreased By -291.2 (-0.82%)

OTTAWA: Canada shed jobs for a third straight month in August and the jobless rate unexpectedly jumped to 5.4%, Statistics Canada data showed on Friday, hinting that higher interest rates are starting to cool the overheated economy.

The economy lost a net 39,700 jobs in August, missing analyst forecasts that it would add 15,000. The jobless rate was also worse than expected, with analysts having predicted it would edge up slightly to 5.0% from a record low 4.9% in July.

“I think this can be taken as a reasonable indication that the economy is, in fact, slowing,” said Andrew Kelvin, chief Canada strategist at TD Securities.

“When you look at the increase in the unemployment rate, that does suggest that maybe a little bit of slack is starting to return to the labor market, though it’s not a complete process and it will be a slow process,” he added.

Canada has lost a net 113,500 jobs in the last three months, the vast majority in full-time work. Despite this decline, full-time employment remains 3.9% higher than a year ago, Statscan said.

Employment last month fell mostly among young women and people aged 55 to 64. The overall participation rate ticked up to 64.8% as 66,200 people joined the labor force.

Wage gains continued to accelerate in August, up 5.6% on the year compared with 5.4% in July, and more people said they were planning on leaving their current jobs in the next 12 months, citing pay and benefits as their top reason.

That wage pressure, which can fuel inflation, will likely keep the Bank of Canada in rate-hiking mode, economists said.

“I think the Bank will be more focused upon the wage side of the picture - the modest acceleration that we have there that’s ongoing,” said Derek Holt, vice president of Capital Markets Economics at Scotiabank.

“I don’t think they will be overly alarmed by the weakening in the jobs reading.”

Canada’s central bank lifted its policy rate to 3.25% on Wednesday, its highest level in 14 years, and made clear more tightening was coming as it battles inflation that is running near a four-decade high.

The Canadian dollar surrendered some of its earlier gains after the data. It was trading 0.4% higher at 1.3035 to the U.S. dollar, or 76.72 U.S. cents.

Comments

Comments are closed.