Photo credit: Radio Canada
Canada lost 68,000 jobs in September, according to Statistics Canada, marking a second straight month of losses.
CBC News reports that the unemployment rate ticked up 0.1 percentage point to 6.5 per cent, the same level it was at the start of the year.
The figure bucked economists’ predictions of a 9,200-job gain in September. It comes after another surprise last month of 42,000 job losses for August, which snapped a hot streak for the labour market.
Before the two monthly declines, Statistics Canada data showed employment trending upward, with 181,000 jobs added between April and July. Employment is still up compared to a year ago by 95,000 positions.
BMO chief economist Doug Porter said job figures are often volatile and have been especially so in recent years. Still, he noted it’s rare to see two months in a row of job losses of this size.
By sector, educational services, health care and social assistance, and manufacturing led the declines. More workers in “other services,” which includes things like repair and maintenance, offset the losses.
Porter says the drop in education jobs, which was concentrated in Quebec, could be a bit of a blip, but says it could also point to weakness in the sector, with fewer international students studying in the country.
CIBC senior economist Andrew Grantham adds that while some data volatility is likely behind the poor report, losses in manufacturing could be a sign that new tariffs which came into effect in August, are taking a toll.
Statistics Canada says job losses were split between full- and part-time work and were concentrated in the public sector, which dropped 70,000 roles in the month. The number of public sector employees is down by 119,000 compared to the same time last year.
The private sector added some jobs and held steady, however – a silver lining.
