Canada’s labour market took a notable downturn in August, according to the latest Labour Force Survey released by Statistics Canada. The country recorded a loss of 66,000 jobs, or 0.3%, marking the second consecutive month of employment decline. This drop was primarily due to a fall in part-time employment, leading to a 0.2 percentage point decline in the employment rate, which now stands at 60.5%.The unemployment rate increased to 7.1% in August, up by 0.2 percentage points from July. This represents the highest rate since May 2016, excluding 2020 and 2021, when the Covid-19 pandemic disrupted labour market patterns.Employment falls for core-aged men and womenJob losses were concentrated among core-aged workers. Men aged 25 to 54 lost 58,000 jobs, a decrease of 0.8%, while women in the same age group lost 35,000 jobs, or 0.5%. The employment rate for core-aged men fell to 85.8%, the lowest since March 2017, excluding the pandemic years. Among core-aged women, the employment rate fell to 79.5%, the lowest since August 2018.There was little change in employment among young people aged 15 to 24 and those aged 55 years and older in August.Unemployment continues to riseThe unemployment rate increased by 0.5 percentage points between January and August. In August, 1.6 million people were unemployed, representing a rise of 34,000, or 2.2%, from July. The layoff rate stood at 1.0%, slightly higher than the 0.9% observed 12 months earlier.The survey found that 15.2% of those unemployed in July had found work in August. This was below the average for the same months between 2017 and 2019, when 23.3% of unemployed people secured employment.The participation rate, which measures the proportion of people aged 15 and older who were employed or seeking work, declined by 0.1 percentage points to 65.1% in August.Youth and students face job challengesThe youth unemployment rate was 14.5% in August, slightly lower than in July but still among the highest since September 2010, excluding the pandemic period.Returning students aged 15 to 24 also faced difficulties. Their unemployment rate was 16.9% in August, nearly the same as in August 2024. For the May to August period, the unemployment rate for returning students averaged 17.9%, the highest since 2009, excluding 2020. Male students recorded a higher unemployment rate at 19.2% compared with 16.8% for female students.Declines across multiple industriesSeveral industries recorded employment decreases in August. Professional, scientific, and technical services lost 26,000 jobs, or 1.3%. Transportation and warehousing fell by 23,000 jobs, or 2.1%, and manufacturing lost 19,000 jobs, or 1.0%.In contrast, construction employment grew by 17,000 jobs, or 1.1%, offsetting most of the decline recorded in July.Provincial job lossesOntario recorded the largest decline, with 26,000 jobs lost, a drop of 0.3%. British Columbia lost 16,000 jobs, or 0.5%, and Alberta declined by 14,000 jobs, or 0.6%. New Brunswick, Manitoba, and Newfoundland and Labrador also posted losses.Quebec employment held steady, though its unemployment rate rose to 6.0% due to an increase of 24,000 people seeking work. Prince Edward Island was the only province to record gains, with 1,100 additional jobs, or 1.2%.Underemployment and multiple jobholdingIn August, 8.8% of employed people said they wanted more working hours at the same rate of pay and were available to do so. This was higher among part-time workers at 23.0%, compared with 6.2% of full-time workers.The share of workers holding multiple jobs was 5.4%, slightly lower than in August 2024 and in 2019. Among these, one-third reported holding multiple jobs to cover essential needs, another third to earn extra income, and 16.6% to pursue work they were passionate about.Average hourly wages increased by 3.2% in August compared with a year earlier, rising by $1.12 to $36.31.