The pace of gains has begun to cool in October, but Canada s labour market continued to heal in October as retail businesses ramped up hiring.
The economy had 31,200 jobs last month, according to Statistics Canada in Ottawa, but did not expectations for a gain of 41,600 in a Bloomberg survey of economists. In September, the unemployment rate fell to 6.7 percent from 6.9 per cent, and the total hours worked rose one per cent. The unemployment rate in Ontario fell to 7.0 per cent from 7.3 to 8.4 per cent from 8.9. The report states that workers are unaffected by COVID 19 restrictions, which shows the economic rebound is intact. The data show how future job gains will return to more normal levels, which was averaged 23,000 per month in the two years prior to the pandemic, as labour slack diminishes.
The indicators of limited labour market slack are starting to flash, said by email by Simon Harvey, a senior FX market analyst at Monex Europe Ltd.
Canada s currency was little changed after the report, and bond reaction was also muted.
The number of Canadians in the labour force increased by 25,000 in October, according to the report. The primary gain last month was in the retail sector that returned to pre-pandemic employment levels with a net gain of 72,000 jobs.
The federal appointed a temporary hire of poll workers was needing a temporary hire, which caused a decline in public administration after jumping in September.
In September, all gains were made in full-time employment. The impact of consumer price inflation has yet to drive pay gains higher, as a result of a rise in average hourly wages for permanent workers. That should give some comfort to policy-makers at the Bank of Canada, who argue broader price pressures aren t likely to trigger a labour cost spiral.
Jimmy Jean, chief economist at Desjardins Securities Inc., said on his email that Wages are still tepid. It will leave the Bank of Canada unimpressed and comfortable in the idea that we re not yet on the verge of massive wage cost pass-through to inflation. Canada s labour market has been on tear since emerging from a third wave of COVID earlier this year, generating 600,000 new net jobs since May, which has brought employment beyond pre-pandemic levels.
These gains caused the Bank of Canada to pare back its stimulus efforts at a policy decision last week. The labour force has grown since the crisis, according to policy-makers led by governor Tiff Macklem, despite the fact that slack remains in the economy. The jobless rate is about a percentage point above pre-pandemic levels.