The longer Canada and the U.S. go without returning to trade negotiations, the more hesitant businesses might be in hiring
Canada’s economy unexpectedly lost 42,000 jobs in August, leading economists to say the Bank of Canada and Canadians in general may have celebrated previous positive growth reports too early.
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As a result, many economists expect the Bank of Canada to keep rates at 2.25 per cent, something it did this week for the seventh time in a row.
Here’s what economists have to say about the latest jobs numbers and what policymakers might do next.
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The labour market cooled down in August after a “hot” July, Andrew Grantham, an economist at Canadian Imperial Bank of Commerce, said, as it gave back more than half of the jobs it gained that month.
The 42,000-job decline was below market expectations of an increase of 15,000.
“Today’s print seems to tally with other evidence (exports, monthly gross domestic product) that the economy is slowing again in quarter three following a strong second quarter and with heightened uncertainty regarding U.S. trade,” he said in a note on Friday.
