Canada adds 67,000 jobs in October as unemployment dips to 6.9%

Canada’s job market rebounded in October with 67,000 new jobs and a lower unemployment rate, but economists warn the recovery lacks depth across sectors.

Canada’s labour market surprised economists in October by adding 67,000 jobs and nudging the unemployment rate down to 6.9 per cent, according to Statistics Canada’s latest Labour Force Survey. The national jobs report, November 7, 2025, outperformed expectations and marks the second straight month of solid employment gains.

The numbers stand out against forecasts. Many economists expected the labour market to flatten or continue softening, following months of gradual decline. Instead, job growth accelerated, with employment rising across several service-based industries.

The majority of new roles were in wholesale and retail trade, which added 41,000 positions. Employment also increased in transportation and warehousing, information, culture, recreation and utilities. By contrast, the construction sector lost 15,000 jobs. This divergence continues a trend seen since early 2025 — gains in service-producing industries and contractions in goods-producing sectors. “Work in goods-producing industries (such as construction and manufacturing) declined between January and October, while services-producing industries gained 142,000 jobs during that same period,” Statistics Canada noted in its release.

Most of October’s new positions were part-time, but according to CBC, CIBC senior economist Andrew Grantham said the tilt toward part-time roles “doesn’t do much to detract” from the strength of the overall headline result.

Private sector employment led the gains, rising by 73,000. The number of public sector employees remained unchanged, and self-employment was relatively stable.

Wages continued to rise. Average hourly earnings grew by 3.5 per cent year-over-year in October, reaching $37.06. That represents a $1.27 increase compared to the same month in 2024. Wage growth has consistently outpaced inflation in recent months. Canada’s annual inflation rate was 3.8 per cent in September, indicating a slight edge for workers, at least in nominal terms.

The report also showed that nearly one in five people who were unemployed in September found work by October. Douglas Porter, chief economist at BMO, called it “one of the largest declines in the number of unemployed [on] record, aside from the pandemic,” according to CBC. 

Youth employment — which has struggled throughout 2025 — improved. According to the survey, the unemployment rate for people aged 15 to 24 declined in October. That’s the first monthly drop for that age group since February, and a potential early sign of stabilization among younger workers.

Still, some economists remain cautious. While October’s results were stronger than expected, the gains weren’t broadly distributed. “A lot of the employment gains were centred in a small number of industries, so the breadth of hiring isn’t really there, which is consistent with an elevated unemployment rate,” said Andrew Hencic, senior economist at TD Bank, to CBC. He added, “The still-high jobless rate is indicative of a labour market that’s still trying to get its feet under it, so to speak.”

Some regional and situational factors also influenced the numbers. Statistics Canada cited a teachers’ strike and lockout in Alberta that led to lost work hours. Ontario saw a lift in employment in sectors like hospitality and entertainment. Porter suggested the Toronto Blue Jays’ playoff run played a role. “There were a lot of signs that the Toronto Blue Jays’ World Series run made its mark on the numbers,” he wrote, pointing to jobs growth in “the very sectors one would expect to get a bounce from all the activity around the playoffs.”

Looking ahead, most analysts believe the Bank of Canada is likely to hold interest rates steady at its next meeting in December. With job growth rebounding and wage growth remaining firm, there’s less pressure on policymakers to deliver another rate cut. “Overall, today’s data is supportive of the Bank of Canada’s thinking that interest rates are now low enough to stimulate the economy, and we continue to forecast no more rate cuts from here,” Grantham wrote in his analysis via CBC.

Porter echoed that sentiment. “With the jobless rate dipping back below 7 [per cent] and wages staying firm, it appears that the [Bank of Canada] will indeed pause in December.”

Hencic added, “We don’t think that this is really moving the needle for the Bank of Canada in the near term.”

For Canadian SMBs, the latest labour market snapshot highlights a mix of opportunity and pressure. Talent is returning to the market, wages are growing and part-time employment remains a critical lever. But hiring remains concentrated, with sectors like construction and manufacturing still lagging behind.

This uneven terrain means employers must stay nimble. Flexibility, role diversity and strategic workforce planning are no longer optional— they’re essential for navigating a labour market that’s shifting, not stalling.