OTTAWA: Canada’s unemployment rate unexpectedly fell to a six-year low last month on hiring led by retailers and financial companies.
Employment rose by 43,100 after a jump of 74,100 the prior month and the jobless rate fell to 6.5 percent from 6.8 percent, Statistics Canada said on Friday in Ottawa. Both results exceeded all economist predictions in a Bloomberg News survey that called for unemployment to rise to 6.9 percent on 5,000 job losses.
The biggest two-month increase in jobs since April 2012 suggests the torpor that had plagued the nation’s labour market may be lifting. Before Friday’s report, average monthly increases had slowed to 12,200 since the beginning of 2013, about half the pace of the three years prior, leading Bank of Canada Governor Stephen Poloz this week to suggest the low jobless rate masked underlying weakness.
Retailing and wholesaling employment rose by 38,500 in October, Statistics Canada said. Finance, insurance, real estate and leasing added 35,700 jobs and manufacturing employment rose by 33,200. Full-time employment rose by 26,500 and part-time positions gained 16,500. Private companies added 70,600 workers and public-sector employment fell by 53,800.
“The general direction is very positive,” Finance Minister Joe Oliver told reporters in Toronto.
Even with strong gains in the last two reports, employment growth over the last 12 months of 1.0 percent has lagged growth in the working-age population of 1.2 percent. Average hourly wages of permanent employees rose 1.9 percent in October from a year earlier.
The jobless rate has declined this year as economic growth accelerates and people give up looking for work. Friday’s report showed the labor force participation rate remained at the lowest since November 2001 at 66.0 percent.
For workers aged 15 to 24, employment rose by 4,400 in October, and 26,500 people left the labour force, Statistics Canada said. Employment in the province of Ontario rose by 37,000 last month, with the jobless rate falling to 6.5 percent from 7.1 percent.
WP-BLOOMBERG
