Canadian employers added 67,000 jobs in October, marking the second consecutive month of employment growth and pushing the national unemployment rate down to 6.9 per cent, according to Statistics Canada’s Labour Force Survey released today.
The employment rate — the proportion of working-age Canadians who are employed — rose 0.2 percentage points to 60.8 per cent. The October gains, combined with September’s increase, offset job losses recorded in July and August.
Part-time work drives October growth
The October employment increase came entirely from part-time positions, which grew by 85,000 jobs. This followed September’s gain of 106,000 full-time positions. Private sector employers added 73,000 workers, the first increase since June, while public sector employment and self-employment remained largely unchanged.
Despite the employment gains, total hours worked edged down 0.2 per cent in October due to labour disputes during the survey period of Oct. 12 to 18. An estimated 87,000 employees across Canada lost work hours because of strikes and lockouts, particularly in Alberta where a teachers’ dispute closed most elementary and secondary schools.
Core-aged men and youth see employment gains
Men aged 25 to 54 accounted for 33,000 of October’s new jobs, a 0.5 per cent increase that marked their second consecutive monthly gain. Their employment rate rose 0.3 percentage points to 86.4 per cent. Employment among women in the same age group held steady at 80.4 per cent after a strong gain in September.
Youth aged 15 to 24 added 21,000 jobs, pushing their employment rate up 0.4 percentage points to 54.2 per cent. This marked the first increase since January, though the youth employment rate remains well below the 59.6 per cent peak recorded in March 2023.
Unemployment drops from 15-year high
The unemployment rate’s decline to 6.9 per cent follows two months at 7.1 per cent — the highest level since May 2016, excluding the COVID-19 pandemic period. Nearly one in five unemployed Canadians in September had found work by October, up from the year-earlier rate but below pre-pandemic averages.
Youth unemployment fell 0.6 percentage points to 14.1 per cent, the first decline since February and a retreat from September’s 15-year high. Core-aged men saw their unemployment rate drop 0.2 percentage points to 6.0 per cent, while the rate for workers 55 and older also declined 0.2 percentage points to 5.3 per cent.
Services sector leads job creation
Wholesale and retail trade added 41,000 positions, more than reversing September’s decline. Transportation and warehousing gained 30,000 jobs, while information, culture and recreation added 25,000 positions.
Construction shed 15,000 jobs in October, bringing the sector’s decline to 38,000 positions since January. From January to October, goods-producing industries posted a net loss of 54,000 jobs while services-producing industries added 142,000 positions.
Ontario drives provincial employment gains
Ontario accounted for most of October’s national employment increase with 55,000 new jobs, the province’s first gain since June. Ontario’s unemployment rate fell 0.3 percentage points to 7.6 per cent. The increase offset earlier declines that coincided with trade and tariff uncertainty affecting Southern Ontario, where Windsor’s unemployment rate peaked at 11.2 per cent in June before declining to 9.6 per cent in October.
Newfoundland and Labrador added 4,400 jobs, while Nova Scotia and Manitoba each lost approximately 4,000 positions. Quebec’s employment remained essentially unchanged for the fourth consecutive month, though its unemployment rate declined 0.4 percentage points to 5.3 per cent as fewer people searched for work.
Wages grow 3.5 per cent year-over-year
Average hourly wages for employees increased 3.5 per cent on a year-over-year basis in October, rising $1.27 to $37.06. This compared with 3.3 per cent growth in September.
Financial difficulties affect over one-quarter of Canadians
More than one in four Canadians — 27.7 per cent — lived in households struggling to meet financial needs for transportation, housing, food and other expenses in October. While down from the 35.5 per cent peak in October 2022, financial strain remained more prevalent among renters (37.0 per cent) than homeowners (23.6 per cent).
Core-aged single parents faced the highest rate of financial difficulty at 46.8 per cent, compared with 32.4 per cent for couples with children and 25.3 per cent for couples without children. Households with at least one unemployed person reported financial difficulties at nearly double the rate (46.1 per cent) of households with no unemployed members (25.8 per cent).
Among Canada’s 20 largest metropolitan areas, Southern Ontario cities with above-average unemployment reported higher rates of household financial difficulty, including Oshawa (37.2 per cent), Barrie (33.7 per cent) and Toronto (32.3 per cent). Quebec City, Montreal, Halifax and Victoria reported the lowest rates, all below 24 per cent.
