Canada unemployment rate rises to 6.7 per cent in October
Canada's unemployment rate went up to a six-month high in October and the economy lost a few thousand jobs as the private sector and full-time employment saw declines, data showed on Friday.
The unemployment rate edged up to 6.7 per cent in October from 6.5 per cent in the prior month, Statistics Canada said. The last time it was higher than this level was 6.9 per cent jobless rate in April.
The economy lost a net of 4,700 jobs in the month, taking the total size of the jobs the economy lost this year to 46,000 overall.
The October report highlights a continued weakness in the labour market in Canada that has failed to post any job gains on average this year as trade tensions between the U.S. and Canada worsened and businesses hunkered down to save costs.
Analysts polled by Reuters had forecast an increase of 13,600 jobs this month, following a loss of 68,300 jobs in September. They had predicted the unemployment rate to stay unchanged at 6.5 per cent.
All the job losses were concentrated in full-time employment which saw jobs shrink by 18,100 last month and almost completely led by a 52,500 jobs in private sector employees. This was the first decline in the private space since February, StatsCan said.
Employment in wholesale and retail trade contracted by 28,800 jobs, posting the biggest decline in October, and was followed by transportation and warehousing where employment declined by 10,100 positions.
Employment in construction increased by 16,000 in October.
The unemployment rate among the youth, or those aged 15 to 24 years, rose 0.7 percentage points to 13.7 per cent last month. This was followed by a rise in jobless rate among people aged 55 and older to 5.5 per cent.
Growth in average hourly wages for permanent employees, a closely watched measure of inflation pressures, slowed to two per cent year-on-year in October, from 2.3 per cent in September, Statistics Canada said.
