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5 Things to Know Today: Job Losses, a Sliding Loonie and Budget 2026 (Nov. 7)

  Canadian Money Brief · Saturday, November 7, 2026 Canada’s job losses stretched to a third month, the loonie took its biggest one-day hit since January, and the federal budget landed with a few items for your wallet. Here’s what to know today. 1 Canada’s job market has now lost jobs three months in a row Statistics Canada said the economy shed 4,700 jobs in October, well short of the gain of about 13,600 economists expected. The unemployment rate rose to 6.7% from 6.5%, a six-month high. That follows losses of 42,000 in August and 68,000 in September, and the country has added just 17,000 jobs over the past 12 months. Alberta lost 24,000 jobs, youth unemployment climbed to 13.7%, and average hourly wages were up only 2.2% from a year earlier. What it means for you: Wages are rising 2.2% a year while September inflation was 3.1%, so paycheques are losing ground. If your income feels less certain, this is a good week to check that your emergency fund covers three to six months of ...
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Japan Sinks into Recession and Loses Its Position in the Global Economy

 

In a significant economic shift, Japan has slipped from its position as the world’s third-largest economy, falling behind Germany. The latest government data reveals that Japan’s economy contracted in the last quarter of 2023, leading to this change in ranking.

For over a decade, Japan held the second spot, but it ceded that position to China. Now, it faces another setback as Germany surpasses it. Here are the key points:

  1. Economic Contraction: Japan’s real GDP shrank by 0.1% in the final quarter of 2023, primarily due to weak spending by households and businesses. Private consumption, which accounts for more than half of economic activity, fell by 0.2% as households grappled with rising living costs and stagnant wages.

  2. Yen’s Impact: The sharp decline of the Japanese yen against the US dollar over the past two years played a crucial role. A weaker yen affects export profits when earnings are repatriated. Germany, too, faces similar challenges, despite being Europe’s largest economy.

  3. Structural Reforms Needed: Japan’s labor crunch is worse than Germany’s, and addressing the low birthrate remains a challenge. The government emphasizes structural reforms, including promoting full-time work for women and easing barriers to foreign investment.

  4. Technical Recession: With two consecutive quarters of contraction, Japan officially enters a technical recession. The country must navigate economic headwinds while welcoming a record number of foreign workers.

While the loss of its global ranking is a blow, Japan remains resilient. As it grapples with demographic shifts and economic complexities, policymakers strive to steer the nation toward sustainable growth.


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