In September, Canada’s economy achieved significant growth, adding 60,000 jobs. This increase exceeded expectations and was primarily driven by the manufacturing sector, which has faced challenges due to tariff uncertainties.
Employment Gains in Canada
According to Statistics Canada, the manufacturing sector alone contributed 28,000 new jobs, marking its first employment increase since January 2023. This gain follows considerable job losses experienced during the U.S. trade conflict, which affected many trade-exposed industries.
Provincial Distribution of Jobs
The job growth was notably strong in Ontario and Alberta. Alberta, in particular, added 43,000 jobs after experiencing declines in the previous summer months. Other provinces also saw gains:
- New Brunswick: 4,700 jobs
- Manitoba: 3,900 jobs
Despite these positive results, the unemployment rate remained stable at 7.1%. This is attributed to a higher number of individuals entering the workforce. While part-time employment saw a decrease of 46,000 positions, full-time jobs increased by 106,000, showcasing a shift in the labor market.
Sector Performance Overview
In addition to manufacturing, the health care and social assistance sectors added 14,000 jobs. The agriculture sector also experienced growth with an increase of 13,000 jobs. However, this progress was countered by a decline of 21,000 jobs in wholesale and retail trade.
Wage Growth
Compensation trends also reflect positive growth, with average hourly wages rising by 3.3%, amounting to $36.78 compared to the previous year. This increase could impact decisions during the upcoming Bank of Canada interest rate meeting.
Outlook and Economic Predictions
Economists, including BMO’s chief economist Douglas Porter, emphasize the importance of this job increase. Although it signifies a stronger performance compared to the previous months, the overall employment growth in the last eight months has only seen a slight increase of 0.1% amidst ongoing trade uncertainties.
As the economic landscape continues to evolve, attention will turn toward the upcoming inflation report on October 21 and the Bank of Canada’s interest rate meeting scheduled for October 29. This data will be crucial for assessing future financial policy directions.
