Unemployment in Canada was 6.4%, not 10% as Trump claimed — TIME

Canada’s unemployment rate stood at 6.4% in August, despite U.S. President Donald Trump’s claim that unemployment was allegedly 10% and rising rapidly. As TIME reports, the figure was unchanged after three consecutive monthly declines from May to July and was below the 7.1% recorded in August 2025.

Job losses in August

According to Canada’s labour force survey, the country’s economy lost 42,000 jobs, or 0.2%, in August. This differed significantly from the consensus forecast, which projected employment growth of 15,000.

Declines were recorded in business services, construction, other support services, mining, and utilities. The number of public-sector employees fell by 20,000, or 0.4%, for the third consecutive month. Meanwhile, the employment rate among the population aged 15 and over declined from 60.9% to 60.8%.

University of Toronto economics professor Joseph Steinberg believes that Canada currently does not have an unemployment problem. In his assessment, the Canadian labour market is generally functioning normally and the unemployment rate is relatively stable. He also noted that immigration rates to the country are currently fairly low.

More current news is available on the UA.News Telegram channel Telegram.

Trade uncertainty

Trump linked the situation in Canada’s labour market to the policies of Prime Minister Mark Carney’s government, including immigration rules. At the end of 2024, Canada revised its immigration policy to curb rapid population growth that was outpacing job creation. In 2025, the country admitted about 328,000 permanent residents, compared with 419,000 a year earlier.

Trump has raised the issue of unemployment amid the prolonged trade confrontation between the United States and Canada. Formal talks between the countries stopped at the end of August, although officials continue to maintain contact. U.S. Trade Representative Jamieson Greer said on September 25 that Washington does not feel any urgency to reach an agreement. Canadian Trade Minister Dominic LeBlanc responded that Ottawa is ready for negotiations but is not seeking a deal at any price.

According to Skuterud, uncertainty caused by the trade confrontation could restrain investment and job creation, primarily in sectors focused on the U.S. market.