The Globe and Mail reports in its Saturday, Sept. 5, edition that Canada's labour market weakened in August, losing 42,000 jobs and missing economists' expectations of a 15,000-job gain, according to Statistics Canada. The Globe's Sophia Bertuzzi writes that the unemployment rate remained at 6.4 per cent. Desjardins Securities economist Royce Mendes says the weak jobs report suggests the job market could have been struggling before the latest tariff hit. "That said, the headline underperformance could just be a normalization after a period of outsized hiring." While the jobs report won't affect the Bank of Canada's outlook, the central bank will remain focused on monitoring inflationary pressures. Because of slack in the labour market, companies have limited ability to pass on higher costs to consumers. Last week, the BOC held its benchmark interest rate at 2.25 per cent for the seventh consecutive time, as widely expected. Governor Tiff Macklem, however, pointed to the upside risks to inflation from the Middle East war, which were interpreted as hawkish. Investors and Bay Street analysts are expecting several rate hikes from the central bank next year.