The data released by the Statistics Office in Canada a short while ago revealed positive labor market data for the country for the month of August; Canada’s economy added approximately 39.9 thousand jobs, better than market expectations which indicated the economy would add only about 18.9 thousand jobs. Meanwhile, previous data showed that Canada’s economy performed poorly, losing the equivalent of 6.4 thousand jobs for the previous month of July.

It is worth noting that the employment change index measures the change in the number of people obtaining jobs during the last month. This data is significant for Canada’s economy and is released shortly after the end of the month, significantly impacting the markets due to its importance and early release date.

During the same timeframe, Canada’s unemployment rate recorded 5.5%, lower than market expectations which indicated it would be 5.6%. It matched the previous reading of Canada’s unemployment rate, which was around 5.5% in the past July.

The unemployment rate measures the percentage of unemployed individuals who are actively seeking jobs from the total labor force within Canada. Although the index data is compiled cumulatively, the number of unemployed individuals serves as an indicator of the health of the Canadian economy, as consumer spending is closely tied to labor market conditions, and it is also a significant factor in the monetary policy decisions of the Bank of Canada.