In September, Canada experienced a significant boost in employment, with the addition of 64,000 new jobs. This surge in job creation was primarily driven by increased hiring in Quebec and British Columbia, which managed to offset the loss of 38,000 jobs in Alberta.
Despite the substantial job growth, the unemployment rate remained stable at 5.5 percent, as more individuals entered the workforce. During the same month, Canada’s adult population grew by slightly over 82,000 people, of which nearly 72,000 were considered part of the labor force, signifying they were of working age and actively seeking employment.
The unexpected increase in employment was approximately double what economists had anticipated for the month, with the majority of the new positions (48,000) being part-time roles. Tu Nguyen, an economist at RSM Canada, suggests that the rise in part-time employment might be linked to the ongoing influx of immigrants, as newcomers may not immediately secure full-time positions. She also noted that approximately 50,000 additional jobs per month are required to maintain a stable unemployment rate, considering the population growth driven by immigration. September’s numbers indicate progress toward this goal, reflecting a more balanced job market where employers can find talent when needed.
The surge in job creation was concentrated primarily in the education sector, which added 66,000 jobs during the back-to-school month. Economist Royce Mendes of Desjardins cautioned against interpreting this hiring spree as a sign of economic strength, as it offset an unusual decline of 44,000 education workers in August due to the seasonal adjustment process used by Statistics Canada. However, when compared to May, the education sector currently employs 26,000 more workers.
Although the past two months have demonstrated significant hiring strength, Mendes pointed out that the total number of hours worked remained flat during September, tempering the overall enthusiasm. Nevertheless, the robust jobs report has increased the likelihood of another interest rate hike at the end of the month, as indicated by the trading in interest rate swaps.
Economists acknowledged some weaknesses beneath the headline job gain but emphasized that this does not necessarily signify a slumping job market. Hourly wages continued to rise, reaching $34.01 for salaried workers, representing a five percent increase compared to the previous year. This wage growth outpaced inflation and was faster than observed in August.
Several sectors of the economy continued to experience sustained demand for workers, with transportation and warehousing adding 18,000 jobs in September and nearly 80,000 over the past year. However, there are challenges in finding enough qualified workers to meet this demand, as illustrated by the trucking industry’s 20,000-job shortfall. Despite this, labor disputes and strikes this year have demonstrated that some workers are successfully advocating for improved pay.