Canada’s job market saw a surprise boost in October, adding 67,000 jobs and pushing unemployment down to 6.9%, driven largely by retail and service sectors.
Employment Growth Surpasses Forecasts
Canada’s labour market saw an unexpected boost in October, with Statistics Canada reporting a gain of 67,000 jobs. The national unemployment rate edged down to 6.9%, defying economists’ expectations of modest or flat growth. Analysts say the result suggests the job market remains more resilient than previously thought, even as businesses continue to adjust to high interest rates.
Part-Time Roles Lead, But Broader Trend Remains Firm
While most of the new positions added in October were part-time, economists note that both part-time and full-time employment are higher than they were one year ago. CIBC senior economist Andrew Grantham said the high share of part-time jobs “doesn’t do much to detract” from the strength of the overall report.
Retail and Service Industries See Strong Hiring
Wholesale and retail trade led the gains with 41,000 new jobs. Additional increases appeared in transportation and warehousing, information, culture and recreation, and utilities. In contrast, construction shed 15,000 positions, continuing a months-long decline in goods-producing sectors. Between January and October, goods-producing industries overall saw employment fall, while services-producing industries gained 142,000 jobs.
Private Sector Expands as Public Hiring Levels Off
Private sector employment rose by 73,000 positions in October, while the number of public sector workers remained essentially unchanged. Economists noted that the data may have been affected by several one-time events, including a teachers’ strike and lockout in Alberta that reduced paid work hours in education.
Cultural Events and Playoffs Influence Job Activity
BMO chief economist Douglas Porter pointed to noticeable employment gains in Ontario, particularly in fields linked to entertainment, food service and recreation. He noted that the Toronto Blue Jays’ playoff run likely contributed to temporary boosts in hiring within sectors connected to major public events and increased tourism activity.
Youth Employment and Wages Show Upward Movement
Nearly one in five Canadians who were unemployed in September found work in October, contributing to one of the largest month-to-month declines in the number of unemployed people on record outside of the pandemic recovery period. Youth aged 15 to 24 saw their unemployment rate fall for the first time since February. Meanwhile, average hourly wages rose 3.5% year-over-year to $37.06.
Economic Outlook Suggests Interest Rates to Hold
Economists say the report supports the Bank of Canada’s view that interest rates are now positioned to stimulate growth. Grantham wrote that no further rate cuts are expected at this time. Porter added that with unemployment dipping below 7% and wage growth remaining steady, the central bank is likely to pause at its next policy meeting in December.
