Canada
added 67,000 jobs in October,
fell to 6.9 percent from 7.1 percent a month earlier.
Statistics Canada reported Friday that most of October's employment growth was driven by part-time jobs, with industries including wholesale and retail trade, transportation and warehousing, and information, culture and recreation posting job gains during the month.
Friday's figures beat the consensus forecast of economists, who expected 20,000 job losses and a rise in the unemployment rate to 7.2 percent.
October's job gains exceed the 60,000 jobs added in September. Statistics Canada said employment gains in September and October offset cumulative job losses recorded in July and August.
However, employment in the goods manufacturing sector between January and October this year now recorded a net decline of 54,000, largely reflecting contractions in manufacturing and construction. Employment in the construction sector fell by 15,000 last month, while the manufacturing sector was little changed, adding 8,700 jobs in October.
In contrast, employment in service sectors grew by 142,000 positions over the same period. The employment rate rose to 60.8% in October, and average hourly wages rose 3.5% year over year, up from 3.3% in September.
During its last interest rate decision in October
cut its policy rate for the second time in a row by 25 basis points, bringing the policy rate down to 2.25 percent, the lower end of what the central bank assesses as a neutral range. Bank of Canada Governor Tiff Macklem said the policy rate is about the “right level” and signaled the bank would complete its easing cycle if the economy performs according to its forecast.
Macklem said he expects the labor market to remain “weak,” although slowing population growth will mean fewer monthly job gains will be needed to maintain stable employment levels.
Canada's trade war with the United States
Now in its eighth month, trade talks between Prime Minister Mark Carney and US President Donald Trump have stalled. Industry tariffs on Canadian steel, aluminum and autos remain in place. The nation's labor market has been particularly hard hit for these industries and regions that rely on U.S. bilateral trade.
Notably, the layoff rate in October was 0.6%, virtually unchanged from the level a year earlier. Long-term unemployment, the share of unemployed people who have continuously looked for work for 27 weeks or more, was also little changed from a year earlier at 21.3 percent.
The youth unemployment rate fell for the first time since February, which fell 0.6 percentage point to 14.1 percent in October.
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