Canada’s Economy Surges with 60,000 New Jobs in September Led by Manufacturing Gains
Optimistic Job Growth in Canada Surpasses Expectations in September
Strong Gains in Canada’s Manufacturing Sector
Canada’s economy defied expectations by adding 60,000 jobs in September, driven predominantly by the resilient manufacturing sector. Data from Statistics Canada revealed that manufacturing employment surged by 28,000, marking the first significant uptick since January. This increase signals a positive shift for the industry, which has been burdened by job losses due to the U.S. trade war.
Regional Employment Trends Highlight Recovery
The boost in job numbers was concentrated in Ontario and Alberta, partially counteracting the 58,000 manufacturing jobs lost from January to August. Despite the unemployment rate holding steady at 7.1%, more individuals have joined the workforce. Full-time employment saw a remarkable rise with an addition of 106,000 jobs, even as part-time employment decreased by 46,000.
Economists Weigh In on Surprising Job Growth
BMO’s chief economist, Douglas Porter, remarked that the employment report greatly surpassed expectations of minor improvements, effectively counteracting the prior month’s downturn. However, he highlighted that the broader employment landscape has incrementally grown by only 0.1% over the past eight months due to ongoing trade uncertainties.
Diverse Sector Contributions to Employment Growth
Employment gains were not limited to manufacturing alone. The health care and social assistance sector saw an uptick of 14,000 jobs, while the agriculture sector added 13,000 jobs. However, these gains were tempered by a decline in wholesale and retail trade, which shed 21,000 positions over the month.
- Alberta recorded the highest job growth, adding 43,000 positions after summer declines.
- New Brunswick contributed with an addition of 4,700 jobs.
- Manitoba saw employment increase by 3,900 jobs.
Wage Growth and Economic Outlook
Across Canada, average hourly wages experienced a 3.3% rise, increasing by $1.17 to $36.78 compared to the prior year. The robust job figures suggest that Canada’s economy is sustaining its momentum despite uncertainties. With the soft labor market having previously influenced a rate cut by the Bank of Canada in September, current solid job growth indicates a potential pause in further rate adjustments, pending the next inflation report on October 21 and the subsequent Bank of Canada meeting on October 29.
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