OTTAWA — Canada’s labour market delivered a stronger-than-expected performance in September, adding 60,000 jobs and keeping the national unemployment rate steady at 7.1 per cent, according to new figures released Friday by Statistics Canada.
Economists had predicted a modest increase of around 5,000 jobs for the month, following steep declines of more than 100,000 positions across July and August. The gains were driven primarily by full-time employment, which surged by 106,000 positions, offsetting a decline in part-time work.
Overall, employment has increased by 22,000 net jobs since the start of the year, despite continued economic headwinds, including U.S. tariffs that have put pressure on several Canadian industries.
Manufacturing Leads the Comeback
The manufacturing sector — particularly sensitive to trade fluctuations — led job growth in September, recording its first monthly increase since January. A total of 28,000 manufacturing jobs were added, signaling a modest recovery in an industry that has struggled with cross-border tariff impacts and slower global demand.
The figures follow months of concern that higher interest rates and weakening trade conditions could lead to a prolonged slowdown in job creation. September’s data, however, suggests parts of the economy may be stabilizing.
Youth Unemployment Still a Concern
While overall unemployment held steady, youth unemployment rose. The jobless rate for Canadians aged 15 to 24 climbed to 14.7 per cent, as students returning to school continued to face difficulties in securing work after a challenging summer job market.
Economic Implications
The stronger employment numbers come amid ongoing debates over whether the Bank of Canada will hold interest rates at current levels or consider easing in the coming quarters. A robust job market could give policymakers reason to remain cautious about lowering borrowing costs too quickly, even as households and businesses contend with slower growth and high debt loads.
September’s job gains also arrive against the backdrop of tariff-related uncertainties, with some sectors still bracing for further impacts from U.S. trade measures.
Economists will be watching closely to see if this uptick in employment is sustained through the fall, or if it represents a temporary rebound following the summer slowdown.