Canada adds 35000 jobs in October, unemployment rate up 0.1 per cent

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Canada added 35,300 jobs in October from September to a total of nearly 18.5 million jobs as gains in full-time work offset a loss of part-time jobs, according to seasonally adjusted numbers released today by Statistics Canada.

That trend seemed to continue across the country, as the Canadian economy continued to churn out more jobs in October, even amid forecasts that economic growth is slowing in the second half of the year.

The Canadian economy added more jobs than expected in October as wages posted their biggest gain in 18 months, a sign that labor market slack could be tightening despite strong employment growth over the a year ago.

The result was a slight increase in the unemployment rate, from 6.0 to 6.1 per cent.

Canada's manufacturing sector added 7,800 new jobs in October, according to Statistics Canada.

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The provincial unemployment rate was 6.1 per cent, compared with 6 per cent in September. Hours worked rose 2.7 per cent from a year earlier, the biggest gain since August 2011, while wages are now growing faster than the average since the recession.

The Bank of Canada, citing the need to remove monetary stimulus as the economy strengthened, raised interest rates in July and September and said it would closely review data before deciding whether to hike again. "And a year ago we had an unemployment rate of 5.8 per cent or close to 4,000 people looking for work".

Employment rose in several industries, led by "other services"; construction; information, culture and recreation; and agriculture.

Among major Canadian cities, only Calgary and Edmonton had higher unemployment rates, at 8.3 and 8.2 per cent respectively.

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