Canada’s economy saw a surge of 60,000 new jobs in September, surpassing expectations, with the manufacturing sector leading the gains, particularly due to the impact of tariffs. Statistics Canada revealed that 28,000 of the new jobs were in manufacturing, marking the sector’s first employment increase since January amidst the challenges posed by the U.S. trade war.
Economist Brendon Bernard noted that although trade uncertainty persists, the recent growth in trade-exposed industries indicates resilience in the short term. The job additions were primarily observed in Ontario and Alberta, helping to offset the 58,000 manufacturing job losses from January to August.
The unemployment rate held steady at 7.1%, with more individuals entering the workforce. While part-time jobs declined by 46,000, there was an increase of approximately 106,000 full-time positions. BMO’s chief economist, Douglas Porter, remarked that the job report exceeded expectations, countering the previous month’s weakness.
Various sectors experienced job growth, including health care and social assistance, which added 14,000 jobs, and agriculture, which saw a rise of 13,000 jobs. However, wholesale and retail trade suffered a loss of 21,000 jobs. Alberta led in job gains among provinces, adding 43,000 jobs, followed by New Brunswick with 4,700 and Manitoba with 3,900 new jobs. Quebec and Ontario maintained relatively stable employment rates.
Average hourly wages increased by 3.3% to $36.78 compared to the previous year. Porter highlighted that Canada’s economy is holding steady amid trade uncertainties, which influenced the Bank of Canada’s decision to cut rates in September. With the labor market showing strength, a potential pause in rate adjustments is likely at the upcoming October meeting.
The next inflation report is scheduled for Oct. 21, with the Bank of Canada’s interest rate meeting following on Oct. 29.
