Canada’s unemployment rate remained unchanged at 6.5% in October, reflecting a continued slowdown in hiring across the economy, according to Statistics Canada’s most recent labour force survey. The report showed a modest addition of 15,000 jobs last month, signaling weak employment growth overall.
The largest gains in employment were seen in the business, building, and support services sectors, while finance, insurance, and real estate experienced the biggest losses. Despite these sectoral shifts, overall job growth struggled to keep pace with the country’s rising population, as noted by Brendon Bernard, senior economist at Indeed.
The weak job market is expected to persist in the near future, though some economists predict a rebound in 2025 as a result of recent interest rate cuts by the Bank of Canada. The central bank’s decision to lower its policy rate aims to support the economy, with expectations that it will help boost hiring as inflation slows.
James Orlando, a TD economist, pointed out that a decrease in immigration could ease the pressure on the labour market, allowing demand from businesses to better align with available workers.
Despite ongoing challenges in employment, wages continued to rise strongly. In October, average hourly wages grew by 4.9% year-over-year, reaching $35.76. This wage growth provides some relief for those already employed, even as job opportunities remain limited for those seeking work.
