Canada's employment shrinks in September, jobless rate inches up
EWU•Canada lost a net 68,300 jobs in September, while the unemployment rate rose to 6.5% from 6.4% in August. Permanent employees’ average hourly wage growth increased to 2.3% year over year.
1. Jobs decline sharply
Canada lost a net 68,300 jobs in September after shedding 41,700 positions in August, Statistics Canada said. Analysts had forecast a gain of 9,200 jobs. The losses left employment down a net 41,200 jobs this year, compared with a gain of 211,300 over the same period last year.
2. Public sector leads losses
The decline was nearly evenly split between full-time and part-time work. Educational services and healthcare and social assistance together lost 58,400 jobs, while manufacturing employment fell by 12,700. Statistics Canada cited fewer international students as one reason for the decline in education services.
3. Participation reaches low
The labor force participation rate fell 0.2 percentage points to 64.8%, its lowest level in 29 years outside the pandemic era. Statistics Canada attributed the decline primarily to an aging population and slower immigration. Permanent employees’ average hourly wage growth rose to 2.3% year over year from 2% in August.
