Canada’s labour market stumbles again with loss of 68,000 jobs in September — SkimNews
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- Canada's labour market shed 68,000 jobs in September — a second consecutive monthly decline after August's 42,000 loss — pushing the unemployment rate to 6.5% from 6.4%.
- The Bank of Canada is widely expected to hold its 2.25% key rate at its Oct. 28 decision, though several hikes are forecast by next summer.
- Public-sector employment drove the losses, falling 70,000 in September (half in Quebec education services) — the fourth straight monthly decline, down 119,000 year-over-year.
- Manufacturing also declined, with Bank of Montreal chief economist Douglas Porter calling it "an early warning of the weight from the amped-up trade tussle" with the United States.
- The U.S. Federal Reserve raised rates in September for the first time this year, with central bankers wary of how Iran-war-driven energy prices could feed inflation.
- Canada's labour force participation rate fell to 64.8% — its lowest since December 1997, excluding early pandemic — amid aging demographics and meagre population growth after the 2022-2024 immigration surge.
Why it matters: The Bank of Canada's Oct. 28 decision now leans toward a hold as two straight months of job losses and rising unemployment undercut the case for resuming hikes. For Canadian borrowers, that means near-term rate relief — but the participation rate's drop to a 28-year low reveals a structural demographic drag that monetary policy cannot solve.
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