The jobless rate in Canada remained the same at 5.5 percent in October as a net 1.8k jobs were shed. The labor force was slightly changed on the month. The total employment was dragged down by a net fall in full time employment, which fell 16.1k, while part time employment rose modestly by 14.3k. Splitting the data differently, the public sector carried the day, adding a net 28.7k jobs, as the private sector shed 2.7k. A 28.8k fall in employment sent the total below zero.
Service producers recorded a rise in employment by 39k and goods-producers saw a fall in employment by 40.9k. Within service producers, marked gains were seen in public administration and finance and insurance. Within the goods producers, falls in manufacturing and construction held back the total.
Province wise, Ontario and Quebec shed the most jobs, with the former recording an unemployment rate of 5.5 percent and the latter 5 percent. B.C. added 15.3k net jobs and saw its jobless rate drop marginally to 4.7 percent.
On a trend basis, the six month average pace of job creation dropped to 22.4k in October, while the year-on-year pace of net hiring stood was a healthy 2.4 percent, comprised largely of gains in full-time employment. Wage gains rose 4.4 percent year-on-year for permanent employees, slightly stronger than the prior month. Growth in total hours rose slightly on the month, holding the year-on-year pace stable at 1.3 percent.
“Employment is still up nicely on a year-year basis, and the gangbuster pace of gains early in the year was never sustainable. Strong wage gains alongside high vacancy rates are indications of labour market tightness, suggesting a more modest trend in net hiring going forward”, said TD Economics in a research report.
