Canada’s Unemployment Rate Drops to 6.9% as Economy Adds 67,000 Jobs in October

Canada’s labour market continued its surprising upward trend in October, adding 67,000 jobs and driving the national unemployment rate down to 6.9%, according to Statistics Canada data released today.

The gains were largely driven by an increase in part-time work, with 85,000 positions added, following strong full-time gains in September. The private sector also saw its first increase since June, adding 73,000 jobs. Ontario led the provincial gains with 55,000 new positions, and the wholesale and retail trade sector experienced the most significant growth, adding 41,000 jobs. This positive trend comes as a potential relief for Canadians facing economic uncertainty.

Economists had predicted a slight decline in employment for October, with a consensus forecast of a loss of 2,500 jobs. TD Bank senior economist Leslie Preston described the back-to-back gains as a “double,” but cautioned, “October’s data is not a home run.” Average hourly wages rose 3.5% year-over-year, accelerating from the previous month, though pay increases have cooled compared to last year. Youth unemployment also saw improvement, falling 0.6 percentage points to 14.1% after reaching a 15-year high in September, a welcome sign for young workers struggling to enter the workforce. You can find more information about Labour Force Survey on the Statistics Canada website.

The Bank of Canada will be closely monitoring these figures as it prepares for its December interest rate decision. Governor Tiff Macklem has indicated the central bank may hold rates steady unless economic data significantly deviates from forecasts. CIBC senior economist Andrew Grantham stated the data supports the Bank of Canada’s view that interest rates are currently low enough to stimulate the economy, and forecasts no further cuts.