Desjardins Group economist Royce Mendes said Canada's labor market cooled
sharply in September, partly reflecting deteriorating Ottawa–Washington trade
talks. Employment fell about 68,000 in September and 42,000 in August, a
two-month loss of roughly 110,000 jobs. Education posted the largest declines
and health care also lost positions. Manufacturing employment fell for the first
time since June; September was the first full month after the US imposed a new
round of tariffs on Canadian goods. The unemployment rate rose 0.1ppt to 6.5%,
though Mendes said the increase would have been larger absent a near 30-year low
in the participation rate.
