Canadian Hiring Momentum Weakens, Limiting Risks of Stronger Inflation, National Bank Says

07:39 AM EDT, 10/30/2026 (MT Newswires) -- Canadian hiring momentum is weakening, limiting the risk of a stronger buildup in inflation, according to National Bank of Canada Capital Markets in a note. Statistics Canada's payroll employment fell by 50,000 in August, marking its steepest decline in nearly three years, after a revised 16,000 drop in July, said the bank in the Thursday note. Thursday's StatsCan data further question the strength of the spring hiring recovery and reinforce signs of labor market cooling already seen in the Labour Force Survey (LFS), according to National Bank. Weakening labor market conditions across both surveys could limit businesses' ability to pass higher input costs on to consumers, easing inflationary pressures, added the bank.