Unemployment rates in Montreal, Quebec rise slightly in October

04 November, 2017, 01:14 | Author: Martin Tyler
  • Unemployment rates in Montreal, Quebec rise slightly in October

Canada's economy pumped out 35,000 new jobs in October almost twice as many as economists were forecasting, Statistics Canada reported Friday.

The economy added 35,300 jobs in October but the unemployment rate crept higher, with more young people looking for work, Statistics Canada said Friday.

According to Statistics Canada, the three month unemployment average ending in October has shot up from the same period previous year (August, September, and October).

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Employment in Ontario edged up by 5,200 jobs in October from September as a gain of 22,000 full-time jobs was partially offset by a loss of 16,700 part-time jobs.

Canada's manufacturing sector added 7,800 new jobs in October, according to Statistics Canada. That's the biggest two-month gain in records going back to 1976. It is up to 5.9%, up from 5.6% in September.

The strong growth to start the year helped prompt the Bank of Canada to raise its key interest rate target twice, but the central bank kept it on hold last month, as it predicted growth would slow. The gains, particularly faster wage growth, could be signaling even less capacity than thought only a few weeks ago.

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"Most importantly, we saw a little bit more acceleration in wages. the labor data does support tighter (monetary) policy at some point next year and perhaps sooner than later", said Andrew Kelvin, a senior rates strategist at TD Securities.

Leading the job growth in October was the "other services" category which gained 21,400 positions, while the construction industry gained 18,400 and information, culture and recreation industries added 15,300 jobs.

Despite adding jobs, Canada's unemployment rate increased to 6.3 per cent, up from 6.2 per cent in September.

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