‘Sour’ job report could give Bank of Canada breathing room on rate hikes, economists say
'This sour result greatly diminishes the chances, let alone the rationale, for rate hikes'
Canada's economy lost 68,000 jobs in September, causing the unemployment rate to rise to 6.5 per cent from 6.4 per cent in August. According to Investing.com, this decline erased all the employment gains made earlier in the year, with a net loss of 41,200 jobs so far this year.
The job losses were spread across full-time and part-time positions, with the public sector, particularly healthcare, social assistance, and education, experiencing significant losses due to the government's reduction of international student permits. Manufacturing, which is partly exposed to US tariffs, lost 12,700 jobs.
The unexpected drop in employment has led economists to suggest that the Bank of Canada may have room to pause on interest rate hikes. Money markets now expect a 25-basis-point increase in December, rather than this month.
Brief written by urgent.news from Financial Post, Investing.com — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
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