The unemployment rate remained unchanged at 6.5% in Canada in October and it climbed a little, from 5.5% to 5.7%, in Quebec.
Posted at 8:38 a.m.
Updated at 10:30 a.m.
The Canadian economy created 15,000 jobs last month, a modest addition that contrasts with the increase of 47,000 jobs in September.
The job market reflects the weakness of the Canadian economy, which has not yet felt the effect of falling interest rates. The employment picture in October is a little worse than the average forecast of economists, who were counting on a variation between 15,000 to 30,000 jobs.
This is the last employment report before the next key rate decision from the Bank of Canada.
For Royal Bank economist Nathan Janzen, the October figures increase the urgency of a further cut in the key rate. The stability of the unemployment rate is mainly explained by the drop in the activity rate, i.e. the proportion of the population who is working or looking for work, he stressed.
The participation rate in October is the lowest since December 1997, according to Statistics Canada. After remaining stable in recent years, “labor market conditions have deteriorated and declines in activity have been recorded for the majority of demographic groups,” specifies the organization.
Net job creation, of 15,000, remains well below the increase in population.
At 6.5%, Canada’s unemployment rate is 0.8% higher than a year ago and there are 193,000 more unemployed people. The average hourly wage continues to increase. The increase was 4.9% in October while it was 4.6% in September.
In difficulty
Statistics Canada also surveyed the population on their economic situation. In October, three in 10 people aged 15 and over said they lived in a household experiencing financial difficulties. This proportion is down compared to a year earlier.
Quebecers remain, year after year, the least likely to experience difficulties in meeting their basic financial needs, according to this survey.
It is in Ontario and Alberta that the share of households who say they are experiencing financial difficulties is highest in Canada.
