Canada's October Jobs Bombshell: 67K Surge Crushes Forecasts, Unemployment Plunges to 6.9% – Loonie Bulls Awake

In October 2025, Canada's labor market delivered a huge shock, generating 66,600–67,000 jobs—much over economist projections of 2,500 to 20,000 job losses. Defying predictions of stagnation at 7.1% or a increase to 7.2%, the unemployment rate decreased 0.2 percentage points to 6.9%—a decline from a nine-year high (excluding pandemic eras). This was the second straight month of positive surprises following September's 60,400 rise, nearly offsetting the 106,000 jobs destroyed in July–August, while the employment rate increased 0.2 points.

Part-time employment—+85,000 to 85,100 positions—powered all the increases, thereby negating a 18,500 decline in full-time jobs—a sharp reversal from full-time domination in September. Led by wholesale/retail trade (+40,700), transportation, warehousing, and information/recreation, private sector hiring rebounded with 73,000 additions—its first since June. Ontario led with 55,000 new jobs; construction lost 15,000. With core-age employees (25-54) adding 38,800, mostly women, youth unemployment demographically decreased to 14.1% from 14.7%, the first fall since February.

For permanent workers, wage growth sped to 4.0% year-over-year (from 3.6%), reaching $37.06 per hour, therefore flashing inflation signals for the Bank of Canada. Amid "wild swings" in data recorded by BMO's Douglas Porter, the report indicates stabilizing slack, maybe halting BoC rate reductions at 2.25% in December but opening doors for 2026 easing. USD/CAD hung at 1.1402 pre-release, preparing Loonie strength on the beat.