Canada experienced a loss of 68,000 jobs in September, as reported by Statistics Canada, marking the second consecutive month of job declines, with the unemployment rate climbing to 6.5 per cent.
The decrease primarily affected young people aged 15 to 24, who accounted for 48,000 of the job losses, according to the data agency.
Statistics Canada indicated that the job losses were seen in both full-time and part-time positions, particularly within the public sector. Sectors such as educational services, health care, social assistance, and manufacturing saw significant declines, while “other services,” including repair and maintenance, saw an increase in workers, offsetting some of the losses.
Despite expectations from a Reuters poll of economists that employers would add 9,200 positions in September, the actual decline follows a previous loss of 42,000 jobs in August, which came as a surprise and ended a positive trend in the labor market.
Prior to these declines, data from Statistics Canada had shown a rising employment trend, with 181,000 jobs added between April and July. Overall, employment remains higher compared to a year ago, with 95,000 more positions.
This latest jobs data will be crucial for the Bank of Canada’s assessment of the labor market ahead of its upcoming interest rate decision on Oct. 28.
