Employment surges in October, led by Ontario and the private sector, while youth joblessness drops
Canada’s job market delivered an unexpected boost in October, with employment rising by 67,000 and the unemployment rate falling to 6.9 percent, according to Statistics Canada.
This marks the second consecutive month of gains, reversing much of the softness seen earlier in the year and providing a positive signal for economic stability.
Employment growth was concentrated among core-aged men (25 to 54 years) and youth (15 to 24 years), with youth unemployment dropping by 0.6 percentage points to 14.1 percent—the first decline since February, as reported by Reuters.
Notably, all of October’s net job gains were in part-time positions, while full-time employment saw a modest decline.
Private sector hiring led the way, and the services sector—particularly wholesale and retail trade, transportation and warehousing, and information, culture and recreation—accounted for the largest increases.
In contrast, construction experienced the largest job losses.
Ontario emerged as the primary driver of national job gains, adding 55,000 positions in October, as per Statistics Canada.
The province’s unemployment rate fell to 7.6 percent, and the increase offset earlier declines linked to trade and tariff uncertainty.
Newfoundland and Labrador also saw employment growth, while Nova Scotia and Manitoba recorded declines.
Wage growth continued to outpace inflation, with average hourly wages rising 3.5 percent year-over-year in October, and permanent employees seeing a 4 percent increase, according to Bloomberg.
However, total hours worked edged down by 0.2 percent, largely due to labour disputes, including a significant teachers’ strike in Alberta.
Financial stress remains a concern for many households.
Statistics Canada reported that 27.7 percent of Canadians aged 15 and older lived in households struggling to meet essential expenses, with renters and single-parent families facing the greatest challenges.
Regions with higher unemployment, particularly in Southern Ontario, saw a greater share of residents experiencing financial hardship.
The Canadian dollar responded positively to the jobs data, strengthening 0.3 percent against the US dollar, while government bond yields rose, reflecting market expectations that the Bank of Canada will likely hold interest rates steady in the near term, as reported by Reuters.
According to Statistics Canada, these employment gains have helped offset the losses recorded in July and August, signalling resilience in the face of ongoing economic headwinds.
