Statistics Canada will unveil its employment report for October this morning, and economists are predicting a slight slowdown in the nation’s job market following a strong surge in September.
According to a Reuters survey, analysts expect the economy to have shed about 2,500 jobs in October, signaling that the rapid pace of hiring earlier in the year may be easing. In September, Canada saw an unexpected gain of more than 60,000 new positions, defying forecasts and showcasing temporary resilience in employment trends.
Despite the anticipated dip, the unemployment rate is projected to hold steady at 7.1 per cent, suggesting that while hiring momentum has cooled, the broader labour market remains relatively stable.
The report comes just weeks after the Bank of Canada implemented its second consecutive interest rate cut, lowering its benchmark rate to 2.25 per cent in an effort to stimulate economic growth amid rising household debt and global uncertainty.
Economists say today’s jobs data will provide crucial insight into how Canada’s economy is responding to easing monetary policy and whether employment softness signals a temporary pause or a deeper shift in the labour market’s trajectory.