Canadian unemployment rate drops to 6.9% as private sector sees substantial gains
Canada’s labour market rebounded in October, adding 67,000 jobs and marking the second consecutive month of employment growth.
The increase, driven primarily by part-time positions, helped offset declines seen over the summer.
“Cumulative gains in September and October (+127,000; +0.6%) have offset cumulative declines observed in July and August (-106,000; -0.5%),” says Statistics Canada.
The national employment rate rose to 60.8%, up 0.2 percentage points from September, though it remains below the 61.1% peak recorded earlier in the year.
Private sector employment led the way with a 73,000-job increase, the first such rise since June. Public sector and self-employment numbers were largely unchanged.
Youth and core-aged men see job gains
October’s job growth was particularly strong among core-aged men (25 to 54 years old), who saw employment rise by 33,000 (+0.5%). The employment rate for this group increased to 86.4%.
Youth employment (aged 15 to 24) also rose by 21,000 (+0.8%), the first increase since January, pushing the youth employment rate up to 54.2%, says the Labour Force Survey.
However, youth employment remains well below its March 2023 high of 59.6%.
For core-aged women, employment was little changed in October after a notable gain in September. The employment rate for this group held steady at 80.4%.
Unemployment rate falls, led by youth
The national unemployment rate declined by 0.2 percentage points to 6.9% in October, having reached 7.1% in August and September—the highest since May 2016, excluding the pandemic years, says Statistics Canada.
The job finding rate improved, with 19.8% of unemployed people in September finding work in October, up from 16.5% a year earlier.
The youth unemployment rate fell by 0.6 percentage points to 14.1%, marking its first decline since February. The rate for core-aged men dropped to 6.0%, while for core-aged women it was little changed at 5.7%. For those aged 55 and older, the unemployment rate fell to 5.3%.
Canada’s job market is showing signs of stabilization, with hiring demand holding steady and wage growth continuing to slow, according to a recent report from RBC Economics.
Services sector leads job creation
Employment gains in October were concentrated in the services sector. Wholesale and retail trade added 41,000 jobs (+1.4%), more than offsetting a decline in September.
Transportation and warehousing employment grew by 30,000 (+2.8%), and information, culture and recreation added 25,000 jobs (+3.0%), says Statistics Canada.
In contrast, construction employment fell by 15,000 (-0.9%), and the goods-producing sector as a whole recorded a net decline of 54,000 jobs (-1.3%) from January to October, mainly due to decreases in construction and manufacturing.
Ontario drives national gains, regional differences persist
Ontario accounted for most of October’s employment growth, adding 55,000 jobs (+0.7%)—its first increase since June. The province’s unemployment rate fell to 7.6%.
Newfoundland and Labrador also saw employment rise (+4,400; +1.8%), offsetting previous declines. Meanwhile, Nova Scotia and Manitoba experienced job losses, with Nova Scotia’s unemployment rate rising to 6.7% and Manitoba’s falling to 5.8% as fewer people searched for work, says the Labour Force Survey.
In Quebec, employment was little changed for a fourth consecutive month, and the unemployment rate declined to 5.3% as fewer people searched for work.
