By Nojoud Al Mallees
(Bloomberg) — The Canadian financial system added 66,600 jobs in October, marking a second consecutive month of shock employment good points as tariffs in any other case decelerate financial exercise.
The employment enhance helped carry down the jobless fee to six.9%, Statistics Canada’s labour power survey confirmed on Friday.
Economists surveyed by Bloomberg had been anticipating the unemployment fee to carry regular at 7.1%, and for the financial system to shed a modest 5,000 jobs.
The Canadian labour market additionally shocked to the upside in September, including a wholesome 60,400 jobs.
Taken collectively, the final two months have reversed a number of the softness within the labour market this 12 months introduced on by the US commerce struggle. Since January, Canada has added a internet 164,500 jobs.
The three-month rolling common for employment good points was 20,500.
The loonie surged to the day’s excessive towards the US greenback after the discharge and rose some 0.3% to C$1.4070 as of 8:35 a.m. in Ottawa. Canadian debt fell throughout the curve and trailed main friends, with the two-year yield rising about 4 foundation factors to 2.43%.
Whereas Financial institution of Canada Governor Tiff Macklem downplayed the importance of the September job report, two consecutive months of sturdy employment good points will doubtless catch the central financial institution’s eye.
Final month, the financial institution lowered its key rate of interest by 25 foundation factors for second time in a row, bringing it to 2.25%. However Macklem signalled that the coverage fee is now at “about the appropriate degree” and the central financial institution might not have the ability to assist the financial system alter to tariffs any additional.
The Financial institution of Canada’s financial coverage report projected the financial system would stay weak via 2027, a interval that Macklem referred to as a “structural transition.”
Job good points in October had been pushed by part-time work. The employment enhance was led by wholesale and retail commerce, transportation and warehousing, data, tradition and recreation in addition to utilities. In the meantime, the biggest job loss final month was recorded in development.
The rise in employment was concentrated in Ontario, the place employment rose by 55,000, marking the primary enhance since June.
The unemployment fee amongst youth, who’ve notably struggled to seek out jobs in current months, fell by 0.6 share factors to 14.1%, declining for the primary since February.
The participation fee rose barely to 65.3% in October.
The employment fee, which displays the proportion of the working-age inhabitants that’s employed, rose as effectively to 60.8%.
Annual wage development for everlasting staff rose to 4%, in comparison with economist expectations for a deceleration to three.5%.
Whole hours labored fell by 0.2% in October resulting from labour disputes and had been up 0.7% in comparison with a 12 months in the past.
–With help from Curtis Heinzl and Carter Johnson.
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Final modified: November 7, 2025