Canadian economy lost 4,700 jobs in October as unemployment rate ticked up to 6.7%
The loss of a few thousand jobs last month follows big back-to-back job losses in August and September, when the Canadian economy shed more than 100,000 roles cumulatively over two months.
The US added 165,000 jobs in October, surpassing economists' expectations, according to the Bureau of Labor Statistics. The unemployment rate decreased to 4.1%. The revised figures for August and September suggest a hotter economy than initially thought.
The improved economic data bolsters the case for the US Federal Reserve to raise interest rates during their December meeting. This would help the central bank combat higher inflation caused by the Iran war. The likelihood of a rate hike jumped by 12 percentage points following the release, according to the CME Fedwatch.
However, some traders raised questions about the Fed's willingness to raise rates, following a $2.5 trillion tech selloff. This decline was triggered by concerns that Democratic gains in the US midterms might slow the AI buildout. An equity trader asked, "Will the Fed want to raise interest rates in the face of a market which is teetering?"
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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