Canada's unemployment rate rose to 6.7% in October even though total employment barely changed. Private-sector employment fell by 53K, and a 50K gain in public-sector jobs offset most of that loss.
Canada's employment declined by 4.7K in October, according to Statistics Canada's Labour Force Survey. The result beat market expectations for a 12.5K decline. September had brought a 68.3K drop.
However, the unemployment rate rose from 6.5% to 6.7%, above forecasts for an unchanged reading. It was the second consecutive monthly increase.
Private-sector jobs fall while public hiring offsets
The headline masked a weaker picture underneath. Private-sector employment fell by 53K, or 0.4%, its first monthly decline since February. Public-sector employment rose by 50K, following four consecutive months of declines totaling 148K.
By industry, wholesale and retail trade shed 29K jobs, extending its 12-month decline to 113K, or 3.7%. Transportation and warehousing lost approximately 10K positions. Construction, in contrast, added 16K jobs, educational services gained 15K, and health care and social assistance gained approximately 14K.
Other labor indicators stay soft
The employment rate edged down from 60.6% to 60.5%, its third straight monthly decline, while labor force participation held steady at 64.8%. Employment has fallen by approximately 115K over the past three months.
Youth unemployment rose from 13.0% to 13.7%. Meanwhile, only 18.9% of unemployed Canadians found work in October, compared with 19.8% a year earlier and a 24.6% pre-pandemic average for comparable months.
Average hourly wage growth eased from 2.3% to 2.2% yoy. ActionForex says the report offers little convincing evidence of a sustained recovery in underlying hiring demand.
Source: ActionForex
Trading involves risk.
Risk Disclaimer
