Canada’s economy appears to be going from bad to worse as the country’s labor market lost a net 66,000 jobs in August, sending the unemployment rate up to 7.1%.
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The August job losses build on 41,000 jobs that were lost in July of this year. In a month, Canada’s unemployment rate has jumped to 7.1% from 6.9%. The poor employment report is the latest in a series of bad news for the Canadian economy, which is struggling under the weight of U.S. tariffs.
At the start of September, it was reported that Canada’s economy contracted 1.6% on a year-over-year basis in this year’s second quarter after growing an annualized 2% in the first three months of 2025. Taken together, the GDP and labor force survey are painting a grim picture, with many economists now forecasting a recession in Canada.
Darkening Skies
The August jobs report was much worse than had been expected. Economists polled by Reuters (TRI) had forecast that the Canadian economy would add 10,000 jobs last month. Employment in Canada fell across several industries, with the biggest losses recorded in the professional, scientific and technical services industry, which shed 26,000 positions.
The poor economic performance is dragging down leading Canadian stocks such as e-commerce company Shopify (SHOP), clothing retailer Lululemon Athletica (LULU), and Canada Goose (GOOS), the maker of winter parkas. LULU stock is down 18% on Sept. 5 after the company again lowered its forward guidance, citing impacts from U.S. tariffs.
Is LULU Stock a Buy?
The stock of Lululemon Athletica has a consensus Moderate Buy rating among 24 Wall Street analysts. That rating is based on 12 Buy, 11 Hold, and one Sell recommendations issued in the last three months. The average LULU price target of $267.76 implies 58.24% upside from current levels. However, these ratings are likely to change after the company’s just-released financial results.
