Canada Adds 67,000 Jobs in October

Canada’s job market showed solid momentum in October, adding 67,000 new positions and nudging the unemployment rate down to 6.9%, according to Statistics Canada. The gain outpaced expectations and points to a labour market that’s still holding up despite broader economic uncertainty.

Private Sector Strength and Service Growth

The bulk of October’s employment gains came from the private sector, which added roughly 73,000 jobs, while the number of public sector employees remained unchanged. The strongest growth was seen in retail and wholesale trade, transportation and warehousing, information and culture, and utilities.

In contrast, the construction sector shed about 15,000 jobs, continuing a trend of weakness in goods-producing industries this year. Overall, service-based roles have led job creation in 2025, adding more than 140,000 positions since January.

Economists See Progress, but Not Perfection

The unemployment rate’s dip from 7.1% to 6.9% marks one of the largest month-to-month declines outside the pandemic era. Economists say that while the improvement is encouraging, it doesn’t yet signal a full recovery.

“You can’t ignore the headline strength,” said BMO chief economist Douglas Porter, “but there’s still work to be done.” TD Bank’s Andrew Hencic echoed that sentiment, noting that most of the gains were concentrated in a few sectors — a sign that the labour market remains uneven.

Youth employment saw its first rise since February, offering a hopeful sign for younger workers who’ve faced higher unemployment rates over the past two years.

Wages Rise, Rate Cut Uncertain

Average hourly wages climbed 3.5% year over year to $37.06, showing steady income growth despite persistent economic headwinds. Combined with a healthier job market, these numbers suggest that the Bank of Canada is likely to hold interest rates steady through the end of the year.

Economists at CIBC and BMO both noted that the data supports the view that rates are now low enough to stimulate growth — but not low enough to justify further cuts anytime soon.

Outlook

While October’s strong performance offers a welcome boost to confidence, experts caution that Canada’s economy is still navigating uneven ground. Employment gains are encouraging, but broader growth will depend on continued stability in key industries and consumer spending heading into 2026.

Source: CBC News