The national unemployment rate remained unchanged at 6.5 per cent in October, as employment saw little movement with a modest increase of 15,000 jobs or 0.1 per cent, according to Statistics Canada.
Despite the steady unemployment rate, the labour force participation rate declined by 0.1 percentage points to 64.8 per cent—the lowest since December 1997, excluding the pandemic years. The employment rate also decreased by 0.1 percentage points to 60.6 per cent, marking the sixth consecutive monthly decline.
Employment gains were noted among male youth aged 15 to 24, rising by 25,000 jobs or 1.8 per cent, while employment decreased among women aged 55 and older by 15,000 jobs or 0.8 per cent. “Employment was little changed in October,” Statistics Canada reported. “On a year-over-year basis, employment was up by 303,000 or 1.5 per cent.”
Average hourly wages increased by 4.9 per cent year over year in October, rising by $1.68 to $35.76, following a 4.6 per cent increase in September. Total hours worked rose by 0.3 per cent in the month and were up 1.6 per cent compared with 12 months earlier.
By province, employment increased in Alberta by 13,000 jobs or 0.5 per cent, and in New Brunswick by 3,300 jobs or 0.8 per cent, while Prince Edward Island saw a decline of 1,100 jobs or 1.2 per cent.
For HR professionals and employers, the steady unemployment rate, coupled with declining participation and employment rates, may signal ongoing challenges in the labour market. The increase in average hourly wages suggests continued wage pressures, which could impact recruitment and retention strategies.
Employment in business, building and other support services rose by 29,000 jobs or 4.2 per cent in October. Declines were observed in finance, insurance, real estate, rental and leasing—down 13,000 jobs or 0.9 per cent—and in public administration, down 8,700 jobs or 0.7 per cent.
Statistics Canada also reported that nearly three in ten Canadians aged 15 and older were living in a household that had difficulty meeting its financial needs in October, down from a year earlier but still above pre-pandemic levels.
Additionally, just over six in ten Canadian workers reported being very satisfied with their job in October, down slightly from a year earlier.
