Canada adds 63300 jobs in September, many more than expected

Marco Green
October 6, 2018

The economy added a net 63,300 jobs in September on a seasonally adjusted basis, Statistics Canada said Friday. Analysts in a Reuters poll had forecast a gain of 25,000 positions.

September's increase in employment was largely driven by gains in part-time work, with part-time jobs up by around 80,000, the agency said in its monthly labour force survey.

Taken together, the jobs and trade reports paint a rosier economic picture than anticipated, increasing the likelihood that the Bank of Canada will increase its trend-setting interest rate later this month, said BMO Financial Group chief economist Doug Porter.

He said it's not just the new deal between Canada, the US and Mexico, but also agreements between China and the USA and Europe and the US that could have an impact. It quickly gave up all the gains as US data showed the unemployment rate fell to near a 49-year low of 3.7 percent.

"The U.S. tax reforms have created uncertainty around how Canada will respond or what Canada's tax advantage will be vis-a-vis the United States".

The lack of workers reentering the market despite the great employment landscape has stumped some economists while others attribute it to the changing employment landscape which includes the gig economy and the increase in automation.

Mendes noted that wage growth is slowing, down to 2.2 per cent from 2.6 per cent, year over year, the month before. This was the smallest year-on-year increase since the 2.2 percent gain in September 2017.

The nation posted a $526 million surplus in August, its first since December 2016, Statistics Canada reported in Ottawa.

Employment increased by about 12,000 in the public sector, which has seen a rise of about 20,000 jobs overall since last September. The six-month average for employment gains rose to 14,800 jobs from 9,700 in August.

Other reports by Click Lancashire

Discuss This Article