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Canada’s job market picked up again in October, adding 67,000 jobs (+0.3%) and pushing the unemployment rate down to 6.9%.
It marked the second straight monthly increase, reversing the losses seen over the summer.
The gains were led by part-time work (+85,100) and were concentrated among core-aged men and youth, while full-time positions were weaker (-18,500). Sectors like retail, transportation, and information services added the most jobs, while construction slipped slightly. Wages rose 3.5% from last year, continuing a steady climb.
While the numbers point to a resilient labour market, economists say they’re not strong enough to reignite inflation pressures, but are just solid enough to keep the Bank of Canada on hold.
TD’s Leslie Preston said the report "will make the Bank of Canada more comfortable to sit on the sidelines and let the 275 basis points of rate cuts work their way through the economy.”
CIBC’s Andrew Grantham added that while the recent strength is encouraging, "the coming months will likely be a truer test of just how quickly the labour market is recovering,” since recent gains only offset earlier weakness.
For now, he said, the data support the Bank’s view that "interest rates are now low enough to stimulate the economy,” and that why CIBC continues to forecast no more rate cuts from here.
With the final Bank of Canada decision of the year coming on December 10, it’s looking more likely that the Bank’s policy rate will hold steady at its current level of 2.25%. If you’re planning a purchase, renewal, or refinance, it may be worth reviewing how recent rate trends could affect your mortgage options.
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