The Canadian economy added a stronger-than-expected 53,700 net jobs in September, with all the gains coming in full-time work and largely driven by the services sector, Statistics Canada data said on Friday in one of its last major economic data releases before a national election.
The national unemployment rate fell to 5.5 per cent from the 5.7 per cent seen in August, while wages for permanent employees rose 4.3 per cent year-over-year. Analysts in a Reuters poll had forecast a gain of 10,000 jobs and an unemployment rate of 5.7 per cent.
Friday’s employment figures will likely be welcomed by Canadian Prime Minister Justin Trudeau, whose governing Liberals are facing a tight re-election campaign against the opposition Conservatives. Canadians vote on Oct. 21.
Ontario, Canada’s largest province and a key political battleground in an election that has largely focused on economic issues, gained a net 41,100 jobs in September, far outpacing its other provincial and territorial counterparts.
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Statscan said the services sector gained 49,400 jobs in September, mostly in the healthcare and social assistance sectors, while the goods-producing sector saw an increase of 4,300, because of the construction industry. Meanwhile, the number of full-time jobs rose by 70,000, while part-time jobs fell by 16,300.
Canada’s central bank has not moved interest rates since October 2018, even as some of its counterparts – including the U.S. Federal Reserve – have eased. The Bank of Canada has said the Canadian economy is showing a welcome degree of resilience against negative shocks, in part, because of a strong labor market.
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