Canada is facing economic challenges similar to its southern neighbour’s: tight labour market conditions and decades-high inflation. The Bank of Canada, just like the Federal Reserve, is aggressively raising interest rates in hopes of cooling off an overheated economy.
Canada’s prime-age unemployment rate increased in August to 4.60%. It was the first time in months that the rate has notably risen. This increase is the first since May 2020 that has not been driven by heightened public health restrictions.
The prime-age labour force (aged 25-54) rose by 45,100 in August, following a lull in July. Meanwhile,