In September, Canadian employment was little changed from the previous month, and the unemployment rate dropped to 5.2 per cent, despite the fact that more people told Statistics Canada they were looking for work, decreasing the size of the active workforce. Canadian employers added more than 21,000 workers in September, Statistics Canada reported on October 8, too few to stand as a significant change from the previous month. The unemployment rate, which had risen to 5.4 per cent in August, dropped to 5.2 per cent last month. The labour force decreased by 20,000 people as fewer people responded to the Labour Force Survey said they were actively looking for work, as a result of a resurgence in hiring. The most important number in Statistics Canada's monthly hiring roundups is wages. The agency said the average hourly wage increased by 5.2 per cent from September 2021, the fourth consecutive month wages have increased by more than five per cent from a year ago. That is fast by historical standards, but not fast enough to match inflation, which is currently hovering around seven per cent.
The Bank of Canada governor Tiff Macklem said he was clear about how he sees economic conditions this week: still too hot. Macklem told a Halifax Chamber of Commerce on October 6 that all signs point to an economy that is clearly in excess demand. Labour markets are very tight. In recent months, job vacancies have dipped a bit, but remain exceptionally high. The wage growth has risen and continues to grow. The central bank, which has raised its benchmark interest rate three percentage points since March, isn't finished. The policy rate, currently at 3.25 per cent, is probably going to go up to four per cent or higher.