Global Finance News
04 Sep 2026, 14:23
Canada Loses 41,700 Jobs in August, but Ivey PMI Jumps to 64.3
Canada’s economic data sent mixed signals Friday, with employment falling sharply in August while the Ivey PMI showed a surprisingly strong acceleration in business activity.
Employment declined by about 41,700 in August, badly missing expectations for a 15,100 increase and reversing part of July’s 75,100 gain. The unemployment rate nevertheless remained unchanged at 6.4%, matching forecasts.
Wage pressures also cooled, with average hourly earnings rising just 2.0% year over year, down from 2.8% in July.
Ivey PMI Surges Above Expectations
In contrast, the August Ivey PMI jumped to 64.3 from 55.1 in July, significantly exceeding the 56.2 forecast.
The combination creates a mixed picture for the Bank of Canada: weakening employment and slower wage growth point toward softer labor-market conditions, while the strong PMI suggests underlying business activity remains resilient.
With the Bank of Canada having kept its policy rate at 2.25% this week, upcoming inflation and GDP data will be important in determining the next move.
Canada’s economic data sent mixed signals Friday, with employment falling sharply in August while the Ivey PMI showed a surprisingly strong acceleration in business activity.
Employment declined by about 41,700 in August, badly missing expectations for a 15,100 increase and reversing part of July’s 75,100 gain. The unemployment rate nevertheless remained unchanged at 6.4%, matching forecasts.
Wage pressures also cooled, with average hourly earnings rising just 2.0% year over year, down from 2.8% in July.
Ivey PMI Surges Above Expectations
In contrast, the August Ivey PMI jumped to 64.3 from 55.1 in July, significantly exceeding the 56.2 forecast.
The combination creates a mixed picture for the Bank of Canada: weakening employment and slower wage growth point toward softer labor-market conditions, while the strong PMI suggests underlying business activity remains resilient.
With the Bank of Canada having kept its policy rate at 2.25% this week, upcoming inflation and GDP data will be important in determining the next move.
