The Canadian Finance Recap
Jobs, PMI Data, Wealthsimple Breach & Stock Market Gains
Get cozy… there's a lot happening in the Canadian economy right now.
Here’s what you need to know in simple, friendly updates:
1. Jobs Are Getting Harder to Land
In August, Canada lost 66,000 jobs, pushing the unemployment rate up to 7.1%… the highest since 2016 (excluding pandemic years).
25-54 year olds were hit hardest. The most affected sectors: tech services, transportation, and manufacturing.
Cities feeling the impact: Windsor (11.1% unemployment), Toronto (8.9%), Edmonton (8.5%), Calgary (7.7%), Montreal (6.8%), and Vancouver (6.1%).
Only 15% of unemployed Canadians in July found work in August, compared to 23% before the pandemic.
Youth unemployment remains high at 14.5%, a major obstacle for job-seeking students and grads.
U.S. tariffs are screwing exporters, especially in autos and steel.
Ivey PMI (August):
Dropped to 50.1 from 55.8 in July… virtually flatlining business activity.
Why does the PMI matter? Think of it like a monthly “pulse check” on businesses. If companies are buying and producing less, it usually means they’re preparing for slower times, which often shows up later as job losses.
With a reading of 50.1, Canada is technically still in “growth” mode, but just barely. Imagine a car rolling forward at 1 km/h… it’s moving, but not enough to feel like progress.
Economists are now putting a 92% chance on a Bank of Canada rate cut on Sept. 17… though inflation continues to keep policymakers on edge.
2. TSX Stock Market — Gold Is Shining
Last week (Sept 2–5), the TSX rose 2.2%, hitting a new record high of 29,115, fuelled by strong gains in gold stocks.
Gold stocks led the charge:
Agnico Eagle (AEM): +10%
Barrick Gold (ABX): +9%
Equinox Gold (EQX): +19%
Kinross Gold (K): +10%
Harnessing the safe-haven shine of gold and investor enthusiasm, these stocks powered the TSX upward amid broader global economic uncertainty.
3. Wealthsimple Data Breach — What You Need to Know
Wealthsimple confirmed a breach affecting less than 1% of its clients. Here’s the impact breakdown:
Safe: No money stolen, no accounts accessed, and no passwords compromised. Your assets are safe.
Potentially exposed: Contact info, government IDs, account numbers, birth dates, and SINs.
Affected users received email notifications by Sept. 5 at 10:30 am EST. If you didn’t get one, you’re not affected.
Impacted clients are being offered 2 years of credit monitoring, dark-web scans, identity protection, and insurance.
Heads up: Even if you weren’t affected, treat your personal data like your money. Turn on 2FA, use unique passwords, and watch out for phishing scams.
✅ In short:
Canada’s economy is showing mixed signals. Job gains are slowing down, business sentiment is flat, and cybersecurity threats are real. At the same time, the TSX is riding a gold-stock-fuelled rally, offering bright spots for investors.
Markets are gearing up for a possible rate cut… but inflation still needs taming. Stay informed, stay safe, and stay resilient. Economic conditions can shift quickly.