Fri Sep 05 16:23:09 UTC 2025: **News Article:**
**Canadian Unemployment Soars to Nine-Year High Amid Trade Uncertainty**
Ottawa – Canada’s job market took a significant hit in August, with the unemployment rate climbing to 7.1%, a level unseen since May 2016, excluding the pandemic period. Statistics Canada data revealed a loss of 65,500 jobs, primarily in part-time positions. This sharp decline pushed the number of unemployed Canadians to nearly 1.6 million.
Experts attribute the downturn to persistent uncertainty surrounding US trade policies, which has made Canadian businesses hesitant to hire and invest. The economic impact of US tariffs on steel, aluminum, and cars appears to be rippling through various sectors, including transportation and manufacturing, which experienced substantial job losses of 22,700 and 19,200 respectively. Even the professional, scientific, and technical services sector, a crucial part of the Canadian economy, shed a significant 26,100 jobs.
“I think it simply reinforces the point that the economy is struggling with the uncertainty on the trade front,” said Doug Porter, chief economist at BMO Capital Markets.
The disappointing job numbers have fueled speculation of a potential interest rate cut by the Bank of Canada. Money markets are pricing in a high probability of a rate cut on September 17th. Despite the bleak employment data, the Canadian dollar has shown strength, benefiting from a broader decline in the US dollar.
First Piper 