Unemployment Rate in Canada Rises to 6.6% in August 2024
In August 2024, the unemployment rate in Canada rose to 6.6%, an increase of 0.2 percentage points from July. This marks the highest unemployment rate since May 2017, excluding the pandemic years of 2020 and 2021. The number of unemployed individuals reached 1.5 million, which is an increase of 60,000 (+4.3%) from the previous month and 272,000 (+22.9%) compared to August 2023.
The unemployment rate for youth aged 15 to 24 was notably high, averaging 16.7% over the summer months, up from 12.9% in 2023. This is the highest rate recorded since 2012, excluding the summer of 2020. The unemployment rate for returning students in this age group also increased, with young men at 18.1% and young women at 15.5%.
In Ontario, the unemployment rate increased by 0.4 percentage points to 7.1% in August, following a period of little change in employment levels. The number of people actively seeking work rose, contributing to the higher unemployment rate. Employment in the province saw a slight increase of 22,000 (+0.3%) in July but remained stable in August.
Among Canada's largest census metropolitan areas, Windsor recorded the highest unemployment rate at 9.2%, followed by Edmonton at 8.6% and Toronto at 8.0%. In contrast, Victoria and Québec had the lowest rates at 3.3% and 4.0%, respectively. Year-over-year, unemployment rates increased in nearly all major metropolitan areas, with the most significant rises in Windsor (+3.2 percentage points) and Oshawa (+2.5 percentage points).
Average hourly wages for all employees increased by 5.0% to $35.16 in August, although wages for recent immigrants saw little change. The data reflects ongoing trends in the Canadian labor market, with various demographic groups experiencing different levels of employment stability and wage growth.
