Canada saw a surge in job growth in September, adding 60,000 new jobs, primarily driven by the manufacturing sector, according to Statistics Canada. The manufacturing industry, which had faced challenges due to tariffs and trade uncertainties, added 28,000 jobs, marking its first employment increase since January.
Economist Brendon Bernard noted that while trade-exposed industries are still facing uncertainties, the recent job gains indicate resilience in the near term. The job growth was concentrated in Ontario and Alberta, partially offsetting the significant job losses the manufacturing sector experienced earlier in the year.
The unemployment rate remained steady at 7.1%, with more individuals entering the workforce. Full-time employment saw a notable increase of 106,000 jobs, while part-time positions decreased by 46,000. BMO chief economist Douglas Porter expressed positivity about the report, stating that it exceeded expectations and reversed the previous month’s weakness.
Aside from manufacturing, job gains were also seen in health care, social assistance, and agriculture, while wholesale and retail trade experienced a decline in employment. Alberta led in job creation, adding 43,000 new jobs, followed by New Brunswick and Manitoba.
Hourly wages increased by 3.3% compared to the previous year, reaching $36.78. Porter highlighted that the job market’s stability could impact the Bank of Canada’s decisions, suggesting a possible pause in interest rate adjustments at the upcoming October meeting.
Looking ahead, the Bank of Canada’s next interest rate decision will be on October 29, following the inflation report scheduled for October 21.
