B.C.’s labour market took a step back in August, shedding 5,500 jobs as the unemployment rate ticked up 0.3 percentage points to 6.5 per cent.

That’s compared with losses of 42,000 jobs nationally and a static unemployment rate of 6.4 per cent, according to Statistics Canada data released Friday.

“After a run of surprisingly hearty job results, it seemed Canada was almost due for a reality check,” BMO chief economist Douglas Porter said in a note.

“So while this is no doubt a soft report, it’s far from a shock, and in part reflects the ongoing sag in the labour force population.”

The province, meanwhile, lost 26,000 full-time jobs and added 20,600 part-time jobs.

By sector, B.C.’s biggest gains reached health care (+10,000 jobs) and information/culture/recreation (+6,100 jobs). The latter category is associated with the film and TV sector.

The biggest West Coast losses were felt in education (-6,300 jobs), tech (-4,500 jobs) and retail (-3,800 jobs).

RBC senior economist Claire Fan said in a note that the Aug. 22 tariffs imposed on Canada by the Trump administration came in too late to significantly impact the latest labour force data.

“Still, early signs including job openings from Indeed.com have not flagged a significant pullback in hiring demand in the wake of those measures,” she said.

TD senior economist Andrew Hencic said in a note that with Canadian counter-tariffs set to go into effect next week the “prospect of further escalation is hard to dismiss.”

Both he and BMO’s Porter said they expect the Bank of Canada to hold steady upon its next rate decision.

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