StatCan reports unemployment uptick, retail jobs continue to climb

Statistics Canada reported last week that Canada lost 40,000 jobs in August 2022, sending the unemployment rate upwards to 5.4%.

Although overall unemployment increased, it’s still less than the pre-pandemic unemployment rate in August 2019, which was 5.8%.

The RCC Retail Pulse Dashboard’s report on August retail employment – without adjusting for seasonal factors – showed an industry specific 0.7% increase in jobs month-over-month and 2.7% year-over-year. This would appear to be a positive sign, given the labour shortages the retail sector has experienced recently.

While small, an uptick in unemployment can raise concerns about consumer spending power. According to RBC, August cardholder spending flattened, coinciding with the high-inflation climate, but is still 30% above pre-pandemic levels and relatively strong. Declining gas prices may also free some discretionary income.