Prime Freight’s summary of a September 2022 report by CBC News. Read the original for the full story.
Statistics Canada reported that the economy lost 40,000 jobs in August 2022, the third monthly decline in a row, pushing the unemployment rate up half a point to 5.4%.
Economists had expected a gain of 10,000 to 15,000 jobs. Instead, losses since May passed 100,000, and the jobless rate rose for the first time in seven months after reaching a record low of 4.9% in June. Most of the decline came from construction, down about 28,000 jobs, and education, down almost 50,000.
Economists interviewed by CBC News saw the education figure as partly a summer data quirk linked to teacher contracts, but read the construction losses as a sign that the Bank of Canada’s rapid rate hikes were cooling the housing market. Others noted that three consecutive monthly declines are usually associated with recessions. Average hourly wages were up 5.4% on the year, still well short of inflation at 7.6%.
What it meant for shippers
A cooling job market and higher interest rates usually mean slower consumer spending and construction, which in turn softens import demand for retail goods and building materials. This was one of several signals in late 2022 that freight demand into Canada was set to ease.