Canada’s labour market added 47,000 jobs in September, pushing the unemployment rate down to 6.5%, its first decline since January of this year.
Statistics Canada reported that the labour market in September added twice as many jobs as during August.
The September drop comes after four consecutive months of no change in the unemployment
rate.
Economists polled by the Reuters news agency had expected 27,000 jobs to be created in September and forecast that the unemployment rate would rise to 6.7%.
Youth and women aged 25 to 54 drove most of the employment gains in September, while full-time employment saw its biggest gain since May 2022.
Despite the strong September jobs report, economists and markets still expect the Bank of Canada to continue lowering interest rates this year and into 2025.
So far this year, Canada’s central bank has lowered interest rates three time for a cumulative reduction of 75-basis points.
The Bank of Canada’s benchmark overnight interest rate currently stands at 4.25%.
Economists say the central bank has leeway to continue cutting rates as inflation in Canada has
declined to its 2% annualized target.
The Bank of Canada’s next decision on interest rates is scheduled for Oct. 23.
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