Wages climb and Alberta leads job growth, but youth unemployment and skills mismatch persist
Canada’s job market delivered a surprise in September, adding 60,000 new positions—far surpassing expectations and driven almost entirely by full-time gains, according to Statistics Canada.
The employment rate edged up to 60.6 percent, while the unemployment rate held steady at 7.1 percent, defying forecasts for a further increase and signalling unexpected resilience in the face of ongoing economic headwinds, as reported by Bloomberg.
Full-time employment surged by 106,000, offsetting a drop of 46,000 in part-time roles. Public sector hiring led the way, with notable gains also seen in manufacturing, health care, and agriculture.
Manufacturing alone added 28,000 jobs, marking its first increase since January and reversing a trend of losses earlier in the year. Health care and social assistance grew by 14,000 positions, while agriculture employment rose by 13,000
Regionally, Alberta led the country with a gain of 43,000 jobs, more than offsetting previous losses and pushing its unemployment rate down to 7.8 percent.
New Brunswick and Manitoba also posted employment increases, though both provinces saw their unemployment rates rise as more people entered the labour force.
In contrast, employment in Newfoundland and Labrador declined
Wage growth continued to outpace inflation, with average hourly wages rising 3.3 percent year-over-year to $36.78, as per Statistics Canada.
Permanent employees saw their wages climb by 3.6 percent, a key metric closely watched by the Bank of Canada.
Despite the headline gains, underlying signals point to a more nuanced picture.
The youth unemployment rate climbed to 14.7 percent, the highest since 2010 outside of the pandemic years, with students facing particular challenges in securing work.
The proportion of workers in roles unrelated to their education or training also increased, especially among recent immigrants, who reported higher rates of overqualification compared to Canadian-born workers.
Analysts note that while September’s job growth signals resilience, slack remains in the labour market.
The Bank of Canada has cautioned that continued uncertainty and the impact of tariffs could lead to further weakness.
Markets are now watching closely for the central bank’s next move, with the odds of another rate cut later this month rising in response to the latest data, as reported by Reuters.
