Ottawa/CMEDIA: With the addition of 67,000 jobs in Oct to the economy, Canadian unemployment rate fell to 6.9 in Oct against economists’ labour market expectations for a second month in a row, Statistics Canada reported Fri.
The private sector saw an employment gain of 73,000 in Oct, the first increase since June with job gains being concentrated in part-time work, while the number of public sector employees and the number of self-employed workers in Oct was little changed .
While industries like the wholesale and retail trade, transportation and warehousing, information, culture and recreation, and the utilities sector were responsible for driving gain on jobs, employment in the construction sector declined.
Employment status in Canadian Provinces and territories
Employment increased in Tariff-sensitive Ontario with the addition of 55,000 jobs. Newfoundland and Labrador also saw a hike in employment with the addition of 4,400 jobs, while Nova Scotia and Manitoba saw a decline in employment. Quebec’s unemployment rate was little changed for a fourth consecutive month in Oct as fewer people searched for work.
Employment status in youth aged 15 to 24 and men aged 25 to 54 years
Oct was also a solid month for Canadian youth looking for work with workers aged 15 to 24 gaining 21,000 positions in the month, the first increase since January. Employment growth was also concentrated among men aged 25 to 54 with the addition of 33,000 jobs marking a second consecutive monthly increase. .
Hourly wages increase
Average hourly wages among employees increased 3.5% on a year-over-year basis in Oct, following growth of 3.3% in Sep.
Labour disputes lead to lost work hours among employees
Despite the employment increase in Oct, an estimated 87,000 employees across the provinces lost work hours due to labour disputes.
This was particularly notable in Alberta where a teachers’ strike, and a subsequent lock-out, led to the closure of most elementary and secondary schools in the province.
On a year-over-year basis, total actual hours were up 0.7% in Oct
Employment Among core-aged women, and core-aged men
Employment among core-aged women was little changed, following a gain of 76,000 jobs in Sept.
Employment rose among core-aged men (25 to 54 years old) in Oct with the addition of 33,000 jobs marking a second consecutive monthly increase.
The layoff rate
The layoff rate in Oct was virtually unchanged compared with 12 months earlier representing the proportion of people who were employed in Sept but had become unemployed in Oct as a result of layoffs.
Long-term unemployment stood at 21.3% in Oct, little changed from 21.2% in Oct 2024.
Average hourly wages among employees increased 3.5% on a year-over-year basis in Oct, following growth of 3.3% in Sep (not seasonally adjusted).
The Bank of Canada and The Central Bank
In its preparation for its final interest rate decision of the year on Dec 10, the Bank of Canada will be parsing labour data closely.
The central bank will also get a look at Nov’s jobs figures before making that call.
Following a pair of consecutive cuts, the bank’s benchmark interest rate stands at 2.25 percent.
“Overall, today’s data is supportive of the Bank of Canada’s thinking that interest rates are now low enough to stimulate the economy, and we continue to forecast no more rate cuts from here,” said CIBC senior economist Andrew Grantham in a note.
