Statistics Canada reported that the jobless rate held at 7.1%, matching August’s 9 year high outside the pandemic years, as employment rose by 60,000 and the employment rate edged up to 60.6%.
The data underscored a slower economy that is still generating jobs, particularly full time positions, even as more people look for work.
The official release detailed broad gains for core age workers and a small drop for those 55 and older, with manufacturing, health care and agriculture posting advances while wholesale and retail slipped.
The loonie briefly slipped beyond 1.40 per U.S. dollar before paring losses, leaving importers with higher costs and consumers facing stickier prices for everything from electronics to off-season produce.
A softer currency can help exporters, but that cushion is limited when global growth and commodity prices are under pressure.
More Read
A jobless rate at a multi-year high argues for easier policy, yet steady hiring and still firm wages warn against moving too quickly. Investors who have been handicapping another cut this month will parse upcoming inflation and retail data alongside today’s labor figures and the exchange rate.
Policymakers have repeatedly emphasized that any decision must be consistent with Bank of Canada’s 2 percent goal, a bar that has proven difficult to meet when shelter costs, food prices and administered fees rise faster than overall demand.
The tariff picture has widened beyond metals, with Washington rolling out tariffs on lumber and some finished products, and Ottawa responding at the margins.
More Read
British Columbia’s tariff relief program highlights the strain facing smaller firms tied to cross border supply chains. Those dynamics feed back into hiring plans, capital spending and the durability of any rebound in manufacturing.
Alberta posted the biggest job gain, aided by manufacturing and agriculture, while Ontario’s unemployment rate ticked higher as more people searched for work.
Youth unemployment rose to its highest since 2010 excluding the pandemic years, a sign that entry level hiring remains tight and that graduates are taking longer to find suitable roles.
Average hourly pay for employees was up on the year, and hours worked have stabilized, several provinces adjusted pay floors on October 1.
The fact that five provinces lifted minimum wage this month could reinforce wage floors in lower paid services even as demand cools, complicating the disinflation path.
