The Canadian economy recorded a surprising increase of 67,000 jobs in October, while the unemployment rate dropped to 6.9 per cent, according to Statistics Canada. This outcome surpassed economists’ expectations for the month.
Although many of the new jobs were part-time, that fact “doesn’t do much to detract” from the overall strong figure, noted CIBC senior economist Andrew Grantham.
Industry Breakdown: Who Gained, Who Lost
Both full-time and part-time employment rose compared with a year ago. By industry:
- Wholesale and retail trade led the way, adding 41,000 jobs.
- Gains also emerged in transportation and warehousing, information, culture and recreation, and utilities.
- Conversely, the construction sector lost about 15,000 jobs.
- For January through October, goods-producing industries (like construction and manufacturing) saw declines, while services-producing industries gained about 142,000 jobs during the same period.
- In October alone, the private sector added 73,000 jobs, while employment in the public sector remained essentially unchanged.
Unemployment Moves and Labour-Market Concerns
The drop in jobless rate—from 7.1 % in September to 6.9 % in October—marks one of the largest monthly declines in unemployment outside of the pandemic era, observed Douglas Porter, chief economist at BMO Capital Markets. Young workers aged 15-24 also saw job gains, bringing the youth unemployment rate down for the first time since February.
However, despite the improvement, many economists emphasise that the unemployment rate remains high. For instance, Andrew Hencic, senior economist at TD Bank, noted that although the 6.9 % figure is better than expected, it “is still not good.” He pointed out that employment gains were concentrated in a few industries, thus the breadth of hiring remains weak—and that suggests the labour market is still finding its footing.
What About Wages and Interest-Rate Outlook?
Average hourly wages rose 3.5 % compared with the same month last year, reaching $37.06 per hour (up by $1.27).
According to Andrew Grantham, the data supports the view of the Bank of Canada (BoC) that interest rates are now sufficiently low to stimulate economic activity. Both Porter and Hencic expect that the BoC will hold off on any rate cuts in the near term, with Hencic saying the latest figures are unlikely to move the needle for the Bank’s immediate policy decisions.
The federal government will send a one-time $1,120 carbon rebate payment in November 2025 to eligible households as part of the climate action plan; criteria include filing a tax return and residing in a participating province, with payments issued via the Canada Revenue Agency (CRA) based on direct deposit information.
