By Promit Mukherjee
OTTAWA, Nov 6 (Reuters) – Canada’s unemployment rate rose to a six-month high in October with the economy shedding a net total of 4,700 jobs, as the private sector and full-time employment both declined, data showed on Friday.
The jobless rate edged up to 6.7% from 6.5% in September, Statistics Canada said, marking its highest level since April when it hit 6.9%. October’s job losses take the total number this year to 46,000.
October’s report highlights continued weakness in the labor market in Canada that has failed to post any job gains on average this year as trade tensions with the US have worsened and businesses hunkered down to save costs.
More than one out of every four people in the employable population of 15 years and older found it difficult to meet their financial needs in terms of transportation, housing, food, clothing and other necessary expenses over the previous four weeks, StatsCan said.
The economy has recorded an average of 4,590 monthly job losses so far this year, in contrast to average monthly gains of 17,606 in 2025 and 33,675 in 2024.
Analysts polled by Reuters had forecast a net increase of 13,600 jobs last month, following a loss of 68,300 jobs in September. They had predicted the unemployment rate would remain unchanged at 6.5%.
FULL-TIME, PRIVATE-SECTOR JOBS HIT HARDEST
All of October’s losses were concentrated in full-time employment, which saw a decline of 18,100 jobs, almost completely led by private-sector employees. This was the first decline in the private sector since February, StatsCan said.
Employment in wholesale and retail trade posted the biggest drop in October, contracting by 28,800 jobs, followed by transportation and warehousing, where employment declined by 10,100 positions.
Employment in construction increased by 16,000.
The unemployment rate among the youth, or those aged 15 to 24 years, rose 0.7 percentage points to 13.7% last month. This was followed by a rise in the jobless rate among people aged 55 and older to 5.5%.
Growth in average hourly wages for permanent employees, a closely watched measure of inflation pressures, slowed to 2% year-on-year in October, from 2.3% in September, Statistics Canada said.
The Canadian dollar weakened on Friday and was trading down 0.54% to C$1.4092 against the US dollar, or 70.96 US cents. Yields on the 2-year government bonds were up 1.8 basis points to 3.174%.
Money markets updated their bets on a rate hike and are now pricing in another 25-basis-point increase in rates only in March. Until Thursday, they were betting a hike to come in January.
(Reporting by Promit Mukherjee; Editing by Dale Smith and Joe Bavier)
