Canada’s economy saw a notable increase of 60,000 jobs in September, surpassing expectations. The growth was primarily driven by the manufacturing sector, which added 28,000 jobs. This upturn marked the industry’s first rise in employment since January, when the U.S. trade war caused significant job losses.
Economist Brendon Bernard pointed out that trade-exposed industries, including manufacturing, still face uncertainties due to tariffs. Nonetheless, the recent positive data indicates a certain resilience in the short term. The job gains were mainly concentrated in Ontario and Alberta, partially offsetting the 58,000 manufacturing jobs lost between January and August.
While the unemployment rate remained steady at 7.1 percent, more individuals entered the workforce. Part-time employment decreased by 46,000, but 106,000 full-time jobs were added. BMO’s chief economist Douglas Porter praised the job report, stating it exceeded expectations and reversed the previous month’s weakness.
Despite the recent job growth, overall employment has only inched up by 0.1 percent in the past eight months since trade uncertainties began earlier this year. In addition to manufacturing, gains were observed in health care and social assistance, with 14,000 new jobs, and agriculture, which added 13,000 jobs. However, there was a decline in wholesale and retail trade employment, with a loss of 21,000 jobs monthly.
Alberta experienced the most significant job increase among provinces, adding 43,000 jobs following declines in the summer. New Brunswick added 4,700 jobs, Manitoba added 3,900, while Quebec and Ontario saw relatively stable employment rates. Average hourly wages rose by 3.3 percent to $36.78 compared to the previous year.
The Canadian economy is holding steady amid trade uncertainties, with the Bank of Canada citing the soft labor market as a factor in the recent rate cut. With the positive job figures, a pause in rate adjustments is likely at the upcoming October meeting. The next inflation report is scheduled for October 21, with the Bank of Canada’s interest rate meeting following on October 29.
