Canada’s economy saw an increase of 60,000 jobs in September, surpassing predictions, with the manufacturing industry leading the gains, according to Statistics Canada. The manufacturing sector added 28,000 jobs, marking its first rise in employment since January amid the challenges posed by the U.S. trade war. Despite ongoing tariff uncertainties, trade-exposed industries are showing resilience in the short term, as per Brendon Bernard, senior economist at Indeed.
The job growth was primarily observed in Ontario and Alberta, partially offsetting the 58,000 manufacturing jobs lost earlier this year. The unemployment rate held steady at 7.1%, with more individuals joining the workforce. While part-time positions decreased by 46,000, approximately 106,000 full-time jobs were created.
BMO’s chief economist, Douglas Porter, noted that the job report exceeded expectations, rebounding significantly from the previous month’s weak performance. Despite the recent improvements, overall employment has only marginally increased by 0.1% since the onset of trade uncertainties in late January.
Apart from manufacturing, the health care and social assistance sectors added 14,000 jobs, while agriculture saw an increase of 13,000 positions. However, employment in wholesale and retail trade declined by 21,000 jobs monthly. Alberta experienced the most substantial job gains among provinces, adding 43,000 jobs following declines in the summer, with New Brunswick and Manitoba also showing positive growth.
Hourly wages rose by 3.3% to $36.78 compared to the previous year. Porter highlighted that the Canadian economy remains resilient amid trade uncertainties and suggested that the recent labor market strength might influence the Bank of Canada’s decision on interest rates at the upcoming October meeting.
The Bank of Canada’s next interest rate meeting is scheduled for October 29, following the inflation report on October 21.
