Canada's employment fell by 41,700 in August, the first decline since April this year, far below the market expectation of a 15,000 increase, Statistics Canada reported on Friday. The unemployment rate remained unchanged at 6.4%. The job contraction was mainly concentrated in sectors such as finance and insurance, real estate, retail, wholesale trade, and accommodation and food services. Public sector employment declined for the third consecutive month. Following the data release, the Canadian dollar significantly weakened against the US dollar, and the two-year Canadian government bond yield fell back to 3.076%. Economists believe this weak report indicates that economic fundamentals remain fragile, and the Bank of Canada's warning of interest rate hikes might be premature.