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Business Recorder
18 hours ago
- Business
- Business Recorder
Canada sheds tens of thousands of jobs as tariffs dent hiring plans
OTTAWA: The Canadian economy lost tens of thousands of jobs in July, sending the share of people employed to an eight-month low, data showed on Friday, as the labor market gave back the gains seen in the prior month. The economy shed 40,800 jobs in July, compared with a net addition of 83,000 jobs in June, taking the employment rate, or the percentage of people employed out of the total working-age population, to 60.7%, Statistics Canada said. The unemployment rate, however, remained steady at a multi-year high of 6.9%. Analysts polled by Reuters had forecast the economy would add 13,500 jobs and the unemployment rate would tick up to 7%. 'Canada's labor market snapped back to reality in July,' Michael Davenport, senior economist at Oxford Economics, wrote in a note. US President Donald Trump's sectoral tariffs on steel, aluminum and autos have hit the manufacturing sector hard and reduced the hiring intentions of companies, the Bank of Canada has previously said. The number of people employed in manufacturing shrank by close to 10,000 in July on a yearly basis as sectors linked to steel, aluminum and autos curtailed hiring and experienced layoffs. Marty Warren, the United Steelworkers' national director for Canada, told Reuters that about 1,000 members have been laid off. Oxford Economics' Davenport predicts more layoffs in the coming months, forecasting about 140,000 lost jobs and an unemployment rate rising to the mid-7% range later this year. Employment in some areas has held up well despite tariffs, the data showed. Overall, there has been little net employment growth since the beginning of the year, StatsCan said. The layoff rate was virtually unchanged at 1.1% in July compared with 12 months earlier. The bulk of the job losses in July occurred among workers aged between 15 and 24 - that group's unemployment rate edged up to 14.6%, the highest since September 2010 excluding the pandemic years of 2020 and 2021.
Qatar Tribune
2 days ago
- Business
- Qatar Tribune
Canada sheds tens of thousands of jobs as tariffs dent hiring plans
Agencies The Canadian economy lost tens of thousands of jobs in July, sending the share of people employed to an eight-month low, data showed on Friday, as the labor market gave back the gains seen in the prior month. The economy shed 40,800 jobs in July, compared with a net addition of 83,000 jobs in June, taking the employment rate, or the percentage of people employed out of the total working-age population, to 60.7 percent, Statistics Canada said. The unemployment rate, however, remained steady at a near multi-year high of 6.9 percent. Analysts polled by Reuters had forecast the economy would add 13,500 jobs and the unemployment rate would tick up to 7 percent. 'Canada's labor market snapped back to reality in July,' Michael Davenport, senior economist at Oxford Economics, wrote in a note. US President Donald Trump's sectoral tariffs on steel, aluminum and autos have hit the manufacturing sector hard and reduced the hiring intentions of companies, the Bank of Canada has previously said. The number of people employed in manufacturing shrank by close to 10,000 in July on a yearly basis as sectors linked to steel, aluminum and autos curtailed hiring and experienced layoffs. Marty Warren, the United Steelworkers' national director for Canada, told Reuters that about 1,000 members have been laid off. Oxford Economics' Davenport predicts more layoffs in the coming months, forecasting about 140,000 lost jobs and an unemployment rate rising to the mid-7 percent range later this year. Employment in some areas has held up well despite tariffs, the data showed. Overall, there has been little net employment growth since the beginning of the year, StatsCan said. The layoff rate was virtually unchanged at 1.1 percent in July compared with 12 months earlier. The bulk of the job losses in July occurred among workers aged between 15 and 24 - that group's unemployment rate edged up to 14.6 percent, the highest since September 2010 excluding the pandemic years of 2020 and 2021. The youth unemployment rate is usually higher than the country's average. The employment rate for this group, which accounts for around 15 percent of the total working-age population, sank to 53.6 percent, the lowest level since November 1998 if the pandemic years are excluded. The Bank of Canada kept its key policy rate unchanged last week, partly due to a strong labor market but indicated it might reduce lending rates if inflation stays under control and economic growth weakens. 'We are now a bit more confident in our view that the Bank of Canada will resume cutting next month, although a surprisingly strong CPI (Consumer Price Index) print next week could prompt another pause,' said Alexandra Brown, North America economist at Capital Economics. Money market bets show the odds of a rate cut at the next monetary policy meeting on September 17 at 38 percent, up 11 percentage points from Thursday. Meanwhile, Prime Minister Carney is scrambling to save his country's relationship with Mexico after it disintegrated late last year when Canadian officials suggested they'd be better off negotiating a trade deal with the Trump administration alone. Carney attempted to break the ice in a phone call with Mexican President Claudia Sheinbaum in July by complimenting an indigenous-made soccer ball she had gifted him at their last meeting and saying he hoped to visit Mexico soon. The warm overture, relayed to Reuters by three people familiar with the call, highlights Canada's attempt to repair the damage after a string of public slights by Canadian officials, including Ontario Premier Doug Ford, who said in November that any comparison of Canada to Mexico was 'the most insulting thing I've ever heard.' Mexico and Canada are in many ways natural allies. They've benefited from trilateral trade deals with the US for 31 years: first the North American Free Trade Agreement in 1994 and subsequently the US-Mexico-Canada Agreement that replaced it in 2020. But the relationship between the two countries has been beset by allegations of betrayal on both sides and memories of fraught negotiations with Trump.
Kuwait Times
2 days ago
- Business
- Kuwait Times
Canada sheds tens of thousands of jobs as tariffs dent hiring plans
Canada seeking to salvage its ties with Mexico after falling out with Trump OTTAWA: The Canadian economy lost tens of thousands of jobs in July, sending the share of people employed to an eight-month low, data showed on Friday, as the labor market gave back the gains seen in the prior month. The economy shed 40,800 jobs in July, compared with a net addition of 83,000 jobs in June, taking the employment rate, or the percentage of people employed out of the total working-age population, to 60.7 percent, Statistics Canada said. The unemployment rate, however, remained steady at a near multi-year high of 6.9 percent. Analysts polled by Reuters had forecast the economy would add 13,500 jobs and the unemployment rate would tick up to 7 percent. 'Canada's labor market snapped back to reality in July,' Michael Davenport, senior economist at Oxford Economics, wrote in a note. US President Donald Trump's sectoral tariffs on steel, aluminum and autos have hit the manufacturing sector hard and reduced the hiring intentions of companies, the Bank of Canada has previously said. The number of people employed in manufacturing shrank by close to 10,000 in July on a yearly basis as sectors linked to steel, aluminum and autos curtailed hiring and experienced layoffs. Marty Warren, the United Steelworkers' national director for Canada, told Reuters that about 1,000 members have been laid off. Oxford Economics' Davenport predicts more layoffs in the coming months, forecasting about 140,000 lost jobs and an unemployment rate rising to the mid-7 percent range later this year. Employment in some areas has held up well despite tariffs, the data showed. Overall, there has been little net employment growth since the beginning of the year, StatsCan said. The layoff rate was virtually unchanged at 1.1 percent in July compared with 12 months earlier. The bulk of the job losses in July occurred among workers aged between 15 and 24 - that group's unemployment rate edged up to 14.6 percent, the highest since September 2010 excluding the pandemic years of 2020 and 2021. The youth unemployment rate is usually higher than the country's average. The employment rate for this group, which accounts for around 15 percent of the total working-age population, sank to 53.6 percent, the lowest level since November 1998 if the pandemic years are excluded. The Bank of Canada kept its key policy rate unchanged last week, partly due to a strong labor market but indicated it might reduce lending rates if inflation stays under control and economic growth weakens. 'We are now a bit more confident in our view that the Bank of Canada will resume cutting next month, although a surprisingly strong CPI (Consumer Price Index) print next week could prompt another pause,' said Alexandra Brown, North America economist at Capital Economics. Money market bets show the odds of a rate cut at the next monetary policy meeting on September 17 at 38 percent, up 11 percentage points from Thursday. Meanwhile, Prime Minister Carney is scrambling to save his country's relationship with Mexico after it disintegrated late last year when Canadian officials suggested they'd be better off negotiating a trade deal with the Trump administration alone. Carney attempted to break the ice in a phone call with Mexican President Claudia Sheinbaum in July by complimenting an indigenous-made soccer ball she had gifted him at their last meeting and saying he hoped to visit Mexico soon. The warm overture, relayed to Reuters by three people familiar with the call, highlights Canada's attempt to repair the damage after a string of public slights by Canadian officials, including Ontario Premier Doug Ford, who said in November that any comparison of Canada to Mexico was 'the most insulting thing I've ever heard.' Mexico and Canada are in many ways natural allies. They've benefited from trilateral trade deals with the US for 31 years: first the North American Free Trade Agreement in 1994 and subsequently the US-Mexico-Canada Agreement that replaced it in 2020. But the relationship between the two countries has been beset by allegations of betrayal on both sides and memories of fraught negotiations with Trump. Top officials virtually stopped talking in November after former Canadian Prime Minister Justin Trudeau mused about cutting a trade deal with the US without Mexico, suggesting the US and Canada were more aligned on issues like China. — Reuters
Al Jazeera
3 days ago
- Business
- Al Jazeera
Canada sheds tens of thousands of jobs as Trump tariffs hit
The Canadian economy lost tens of thousands of jobs in July, sending the share of people employed to an eight-month low as the labour market gave back the gains seen in the prior month. The economy shed 40,800 jobs in July, compared with a net addition of 83,000 jobs in June, taking the employment rate, or the percentage of people employed out of the total working-age population, to 60.7 percent, Statistics Canada said on Friday. The unemployment rate, however, remained steady at a multiyear high of 6.9 percent. Analysts polled by Reuters had forecast the economy would add 13,500 jobs and the unemployment rate would tick up to 7 percent. 'Canada's labour market snapped back to reality in July,' Michael Davenport, senior economist at Oxford Economics, wrote in a note. United States President Donald Trump's sectoral tariffs on steel, aluminium and cars have hit the manufacturing sector hard and reduced the hiring intentions of companies, the Bank of Canada has previously said. The number of people employed in manufacturing shrank by close to 10,000 in July on a yearly basis as sectors linked to steel, aluminium and carmaking curtailed hiring and experienced layoffs. Marty Warren, the United Steelworkers' national director for Canada, told Reuters that about 1,000 members have been laid off. Oxford Economics's Davenport predicts more layoffs in the coming months, forecasting about 140,000 lost jobs and an unemployment rate rising to the mid-7 percent range later this year. Employment in some areas has held up well despite tariffs, the data showed. Overall, there has been little net employment growth since the beginning of the year, StatsCan said. The layoff rate was virtually unchanged at 1.1 percent in July compared with 12 months earlier. The bulk of the job losses in July occurred among workers aged between 15 and 24 – that group's unemployment rate edged up to 14.6 percent, the highest since September 2010, excluding the pandemic years of 2020 and 2021. Policy rate The youth unemployment rate is usually higher than the country's average. The employment rate for this group, which accounts for about 15 percent of the total working-age population, sank to 53.6 percent, the lowest level since November 1998 if the pandemic years are excluded. The Bank of Canada kept its key policy rate unchanged last week, partly due to a strong labour market, but indicated it might reduce lending rates if inflation stays under control and economic growth weakens. 'We are now a bit more confident in our view that the Bank of Canada will resume cutting next month, although a surprisingly strong CPI [Consumer Price Index] print next week could prompt another pause,' said Alexandra Brown, North America economist at Capital Economics. Money market bets show the odds of a rate cut at the next monetary policy meeting on September 17 at 38 percent, up 11 percentage points from Thursday. The information, culture and recreation sector lost 29,000 jobs last month, marking the biggest decline, followed by 22,000 lost jobs in construction and 19,000 in business, building and other support services. The average hourly wage of permanent employees – a gauge closely tracked by the Bank of Canada to ascertain inflationary trends – grew by 3.5 percent in July to 37.66 Canadian dollars ($27.4) per hour, against a 3.2 percent increase in the prior month.
CNA
3 days ago
- Business
- CNA
Canada sheds tens of thousands of jobs as tariffs dent hiring plans
OTTAWA: The Canadian economy lost tens of thousands of jobs in July, sending the share of people employed to an eight-month low, data showed on Friday (Aug 8), as the labour market gave back gains from the previous month. The economy shed 40,800 jobs in July, compared with a net addition of 83,000 jobs in June, taking the employment rate, the percentage of people employed out of the total working-age population, to 60.7 per cent, Statistics Canada said. The unemployment rate held steady at a multi-year high of 6.9 per cent. Analysts polled by Reuters had forecast a gain of 13,500 jobs and a small uptick in the unemployment rate to 7 per cent. "Canada's labour market snapped back to reality in July," said Michael Davenport, senior economist at Oxford Economics. TARIFFS HIT MANUFACTURING US President Donald Trump's sectoral tariffs on steel, aluminium and autos have hit the manufacturing sector hard, reducing hiring intentions, the Bank of Canada has previously said. The number of people employed in manufacturing fell by nearly 10,000 in July from a year earlier as sectors linked to steel, aluminium and autos scaled back hiring and carried out layoffs. Marty Warren, national director of the United Steelworkers in Canada, told Reuters that about 1,000 members have been laid off. Oxford Economics' Davenport expects more layoffs in the coming months, forecasting about 140,000 job losses and an unemployment rate rising to the mid-7 per cent range later this year. Employment in some sectors has remained resilient despite tariffs, the data showed. Overall, there has been little net employment growth since the start of the year, while the layoff rate was virtually unchanged at 1.1 per cent in July compared with the same month a year earlier. YOUTH BEAR THE BRUNT The bulk of July's job losses occurred among workers aged between 15 and 24, whose unemployment rate edged up to 14.6 per cent, the highest since September 2010, excluding the pandemic years of 2020 and 2021. The employment rate for this group, which makes up about 15 per cent of the working-age population, fell to 53.6 per cent, the lowest level since November 1998 if the pandemic years are excluded. The youth unemployment rate is typically higher than the national average. POLICY RATE OUTLOOK The Bank of Canada kept its key policy rate unchanged last week, partly due to labour market strength, but said it may reduce lending rates if inflation stays contained and economic growth slows. "We are now a bit more confident in our view that the Bank of Canada will resume cutting next month, although a surprisingly strong CPI print next week could prompt another pause," said Alexandra Brown, North America economist at Capital Economics. Money market bets put the odds of a rate cut at the next policy meeting on Sep 17 at 38 per cent, up 11 percentage points from Thursday. The Canadian dollar was trading down 0.07 per cent at 1.3753 against the US dollar, or 72.71 US cents. The information, culture and recreation sector lost 29,000 jobs in July, the largest decline, followed by a drop of 22,000 jobs in construction and 19,000 in business, building and other support services.
