Canada lost 42,000 jobs in August, StatsCan says

Economists had expected gains. Unemployment rate unchanged

Canada lost 42,000 jobs in August, Statistics Canada said Friday, contrary to economists' expectations, while the unemployment rate was unchanged at 6.4 per cent.

Statistics Canada said the number of public sector workers fell by 20,000, declining for a third consecutive month. Jobs were little-changed in the private sector.

By region, Quebec was hardest hit, losing 19,000 jobs. Ontario followed with a loss of 18,000.

A Reuters poll of economists had predicted employers would add 15,000 jobs in August, while the unemployment rate was expected to stay at 6.4 per cent, according to LSEG Data & Analytics. RBC Economics had predicted a smaller 5,000-job increase.

The Canadian economy had added 75,000 jobs in July.

The latest jobs report comes as historic trade tension between Canada and the United States threatens a wide swath of industries. Last month, U.S. President Donald Trump imposed 50 per cent tariffs on about $28 billion worth of Canadian products. Starting Tuesday, Canada will match those levies with dollar-for-dollar tariffs on $27.6 billion of comparable U.S. goods.

Last week, the federal government rolled out a $7.5-billion expanded economic relief program for impacted workers and businesses. The new supports are on top of the nearly $25 billion in tariff support it implemented over the past 18 months.

On Wednesday, Bank of Canada Governor Tiff Macklem said that while the latest U.S. tariffs are "very steep," they apply to a "relatively narrow" selection of goods.

With files from The Canadian Press