Canada's labour market weakened again in October. Employment fell by a net 4,700 in the month and the unemployment rate rose to 6.7 percent, Statistics Canada said in its monthly Labour Force Survey released at 8:30 a.m. Eastern on Friday, November 6. The jobless rate is the highest in six months — the last time it was higher was April's 6.9 percent — and October was its second consecutive monthly increase.
Source: Reuters via Kitco News
Both headline numbers missed what economists expected. Analysts polled by Reuters had forecast an increase of 13,600 jobs and an unemployment rate unchanged at 6.5 percent. Instead, employment shrank for a third straight month, after declines of 68,300 in September and 42,000 in August, as 33,000 more people began looking for work.
Source: Reuters via Kitco News
The losses were concentrated in full-time work and the private sector. Full-time employment shrank by 18,100, and private-sector employment fell by 52,500 — the first private-sector decline since February, Statistics Canada said. There were 1.5 million people unemployed in October, and nearly one in four of them (23.7 percent) had been searching for work for at least 27 weeks.
Source: Reuters via Devdiscourse
By industry, wholesale and retail trade posted the biggest decline, shedding 29,000 jobs (1 percent) in October; the sector has lost 113,000 jobs, or 3.7 percent, over the past year. Transportation and warehousing employment fell by 10,100. On the other side, construction added 16,000 jobs (up 0.9 percent) after two months of little change, and educational services added 15,000.
Source: Retail Insider, reporting Statistics Canada
Youth unemployment, for workers aged 15 to 24, rose 0.7 percentage points to 13.7 percent. The overall employment rate slipped 0.1 percentage points to 60.5 percent, its third consecutive monthly decline. Average hourly wages rose 2.2 percent year over year, up 83 cents to $37.89, while wage growth for permanent employees slowed to 2.0 percent from 2.3 percent in September.
Source: Retail Insider, reporting Statistics Canada
The Labour Force Survey is Statistics Canada's monthly measure of how many Canadians are working and how many are looking for work. Traders and the Bank of Canada typically watch it closely because sustained job losses and a rising jobless rate usually mean a weaker economy and less pressure for higher interest rates, while strong hiring usually points the other way. Reuters reported that Canada has now lost 46,000 jobs so far this year — an average monthly loss of about 4,590 jobs, against average monthly gains of 17,606 in 2025 — as trade tensions with the United States weighed on hiring.
Source: Reuters via Kitco News
Over the full year to October, employment was still up 17,000 (0.1 percent), Statistics Canada said. The next Labour Force Survey, covering November, is scheduled for release in December.