Canada adds 67,000 jobs in October as unemployment dips to 6.9%
Canada’s economy added a surprising 67,000 jobs in October, pushing the unemployment rate down to 6.9%, according to Statistics Canada. The gain was much stronger than most economists expected.
Most of the new jobs were part-time, but experts say that doesn’t take away from the strong overall growth. Both full-time and part-time work increased compared to last year. The biggest job gains came in wholesale and retail trade, which added about 41,000 jobs, as well as transportation and warehousing, information and culture, recreation, and utilities.
However, the construction industry lost 15,000 jobs, and overall, goods-producing sectors like manufacturing and construction have declined since January. Meanwhile, service industries have added more than 140,000 jobs so far this year.
In October, private sector jobs rose by 73,000, while the public sector remained steady.
Unemployment improves but challenges remain
About one in five unemployed Canadians in September found work in October. Economists noted that the drop from 7.1% to 6.9% was one of the largest declines on record outside of the pandemic years.
The youth unemployment rate also fell for the first time since February as more people aged 15 to 24 found jobs.
Still, economists warn that the job market isn’t fully recovered. “Sure, it’s better than the 7.1% we thought. But it’s still not good,” said Andrew Hencic, a senior economist at TD Bank. He said the economy is still “finding its footing” because most job gains came from only a few industries.
No rate cuts expected soon
Some temporary factors affected October’s numbers, including a teachers’ strike in Alberta and the excitement around the Toronto Blue Jays’ playoff run, which helped boost jobs in entertainment and hospitality.
Average hourly wages increased 3.5% over the past year, reaching $37.06 per hour.
Economists say the strong job growth and steady wages mean the Bank of Canada is likely to pause interest rate cuts at its next meeting in December.
