According to the labor force survey released by Statistics Canada on October 9, jobs decreased by 68,300 in September. This marks the second consecutive month of decline following a drop of 41,700 in August, and is the exact opposite of the market's expectation of an increase of approximately 9,000.
- The unemployment rate rose by 0.11 points from 6.41 points in August to 6.51 points in September.
- The decline was pronounced among young people aged 15–24, women aged 25–54, and in the public sector, with 70,000 public sector jobs lost. The private sector saw an increase of 24,100 jobs.
- The manufacturing sector saw a decrease of 12,700 jobs, and the education, health, and social welfare sectors also declined significantly. The average hourly wage growth rate rose slightly to 2.31 TP3T from 2.01 TP3T in the previous month.
- Expectations for a rate hike by the Bank of Canada have weakened due to sluggish employment. The market has lowered the likelihood of a hike at the October 28 decision from 401 TP3T prior to the announcement to 251 TP3T, and the Toronto S&P/TSX index rose 1.481 TP3T on the day, marking its largest gain in five weeks.
Those currently seeking employment should be mindful of the slowdown in public sector hiring and intensifying competition among young people for the time being, and it would also be advisable to monitor the impact of interest rate decisions on mortgage and loan rates.
Source: Morningstar (Dow Jones Newswires) — https://www.morningstar.com/news/dow-jones/202610093422/canada-jobless-rate-edges-up-with-another-drop-in-employment-update
|
