Jobless rate rises to 6.7% amid small employment decline

By Nojoud Al Mallees

(Bloomberg) — Canada’s unemployment rate edged up to 6.7% in October as more people looked for work and employment fell modestly, pointing to ongoing softness in the labour market.

Overall employment fell by 4,700 last month, Statistics Canada reported on Friday. The number of private-sector employees declined by 52,500, marking the first decline since February, but largely offset by a 49,600 increase in public-sector workers. The jobless rate climbed from 6.5% in September.

Employment in wholesale and retail trade fell by 28,800 last month, and has trended downward over the past year, with the industry shedding a cumulative 113,100 jobs. The year-over-year decline was concentrated in Ontario, Quebec and British Columbia.

Economists surveyed by Bloomberg expected employment increased by 15,000 in October and the jobless rate held steady at 6.5%.

The job market has stalled this year as US tariffs continue to punish some sectors of the economy. Employment has declined by 46,000 so far this year, which continues to be the largest year-to-date loss since the 2009 financial crisis, excluding 2020 during the COVID-19 pandemic.

But the labour market weakness didn’t stop the Bank of Canada from raising interest rates last week, as it placed more emphasis on inflation risks.

Governor Tiff Macklem said the central bank doesn’t have a predetermined path for interest rates, and will take future decisions one at a time. Traders in overnight swaps have placed the odds of another rate hike in December at 40% prior to the job release.

While the central bank sees inflation risks mounting from the ongoing energy shock of the Middle East conflict, growth in Canada is also expected to slow as U.S. tariffs continue to weigh on the economy.

Prime Minister Mark Carney said on Sunday that Canada and the U.S. are set to resume trade talks to work on a “mutually beneficial” outcome in the weeks ahead.

Long-term joblessness has increased in Canada over the past year, with the share of unemployed Canadians in October who have been looking for work for 27 weeks or more increasing to 23.7%, up from 21.5% a year prior.

The job report also found the share of Canadians living in households that are struggling to meet their financial needs increased for the first time since 2022, with 29.7% reporting those challenges compared with 27.7% in October 2025.

The unemployment rate for youth between the ages of 15 and 24 increased the most last month, rising by 0.7 percentage points to 13.7%.

Meanwhile, employment increased in construction by 15,600 and is up by 47,000 from a year ago.

The number of people employed in educational services also increased by 15,000 but is down by 48,300 compared with 12 months earlier.

Average hourly wages of permanent full-time employees were up 2% from a year ago, down from 2.3% and below the 2.1% economist estimate.

–With assistance from Mario Baker Ramirez.

©2026 Bloomberg L.P

Visited 1 times, 1 visit(s) today

bloomberg Dashboard economic data labour force survey statcan statcan employment statistics canada Statistics canada employment

Last modified: November 6, 2026