Surprise gains and rising wages signal resilience in Canada’s labour market despite economic headwinds
Canada’s job market delivered a surprise in October, adding 67,000 positions and driving the unemployment rate down to 6.9 percent—a signal that the labour market is showing resilience even as economic headwinds persist, according to Statistics Canada.
The gains, concentrated in part-time roles and led by private sector hiring, mark the second consecutive month of growth and have reversed much of the softness seen earlier this year.
Ontario stood out as the engine of growth, adding 55,000 jobs—the province’s first increase since June—while Newfoundland and Labrador also posted gains.
In contrast, Nova Scotia and Manitoba saw employment declines.
The wholesale and retail trade sector led the way, followed by transportation, warehousing, information, culture, and recreation, as reported by Statistics Canada.
Wage growth continued, with average hourly earnings rising 3.5 percent year-over-year to $37.06 in October, as per Statistics Canada.
Permanent employees saw annual wage growth reach 4 percent, exceeding economist expectations, according to Bloomberg.
The youth segment, which had faced rising unemployment throughout the year, saw its jobless rate fall by 0.6 percentage points to 14.1 percent—the first decline since February, as noted by Reuters.
Employment among men aged 25 to 54 also rose, while core-aged women’s employment was little changed.
Despite the robust employment numbers, total hours worked edged down by 0.2 percent in October, a dip attributed to labour disputes, as reported by Bloomberg.
The Bank of Canada, which recently lowered its key interest rate to 2.25 percent, has signalled a pause in further easing, and the strong jobs report has reinforced market expectations that rates will remain steady in the near term.
Financial markets responded swiftly: the Canadian dollar strengthened by 0.3 percent against the US dollar, and government bond yields climbed, as reported by Reuters.
