Canada’s unemployment rate holds steady at 6.5%

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Canada’s unemployment rate remained unchanged for the month of October at 6.5 per cent, with the economy adding 15,000 jobs, Statistics Canada said on Friday.

The job gains were about half the consensus expectation of 27,000 new positions.

Unemployment was up 0.8 per cent compared to the same time last year, with 193,000 more people looking for jobs or on temporary layoff.

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The participation rate declined to 64.8 per cent in October, marking the fourth monthly decline since May and hitting its lowest point since December of 1997, excluding the pandemic years.

Hiring demand has slowed with employment in the private sector and the public sector unchanged for the month of October. Employment in business, building and support services rose by 4.2 per cent. Statistics Canada reported declines in public administration and in finance, insurance and real estate, but noted those industries are still up on a year-over-year basis.

Notably, the youth unemployment rate declined again in October to 12.8 per cent, down from its recent peak of 14.5 per cent in August. The youth employment rate rose to 54.4 per cent, its first increase since April.

Wage growth accelerated in October, with average hourly wages increasing on year-over-year basis by 4.9 per cent, following a 4.6 per cent gain in September.

• Email: jgowling@postmedia.com

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