The suspense is palpable as Statistics Canada is gearing up to unveil the results of its August labor force survey on Friday morning.
Economists consulted by Reuters have made predictions, estimating that employers have added 25,000 jobs and that the unemployment rate has climbed to 6.5 percent for the month, according to LSEG Data & Analytics.
In Canada, the jobless rate has been on a steady incline for the past year and a half, largely due to high interest rates slowing down economic activity. The previous month saw the unemployment rate at 6.4 percent in July.
Notably, the Bank of Canada recently made headlines by reducing its key interest rate for the third consecutive time, signaling further rate cuts are on the horizon as long as inflation remains subdued. Governor Tiff Macklem made it clear that if the economy experiences a sharper slowdown or if inflation drops more rapidly than anticipated, the central bank stands prepared to implement interest rate cuts at a quicker pace.
Key points to take away from the upcoming report are:
- Economists are predicting a growth of 25,000 jobs in the August labor force survey.
- Unemployment rate expected to rise to 6.5 percent.
- Canada’s jobless rate has seen a continuous rise due to high interest rates hindering economic activity.
In conclusion, as we await the imminent release of the August labor force survey by Statistics Canada, all eyes are on the numbers that will shed light on the current state of employment in the country. Stay tuned for the latest updates and insights on Canada’s labor market trends.
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