The Canadian Press
Fri, November 3, 2023
OTTAWA — Canada’s unemployment rate rose to 5.7 per cent last month as job opportunities became less plentiful in an economy weighed down by high interest rates.
Statistics Canada released its October labour force survey Friday, which showed the economy added a modest 18,000 jobs.
The gain was not enough to keep the unemployment rate from rising as the pace of job creation trails population growth.
Canada’s unemployment rate was 5.5 per cent in September.
October marks the fourth increase in the jobless rate over the past six months and adds another data point in favour of the Bank of Canada's rate pause, according to economists.
"While the headline job gain was uneventful, make no mistake that the underlying picture for Canada's labour market is softening," wrote Bank of Montreal chief economist Douglas Porter in a note to clients.
Employment rose last month in construction and information and culture and recreation, but the increase was offset by declines in wholesale and retail trade as well as manufacturing.
Wages continued to grow quickly, but the pace slowed last month compared to September, with average hourly wages up 4.8 per cent to $34.08 from a year ago.
The Bank of Canada opted to hold its key interest rate steady at five per cent during its last two decision meetings, largely due to growing evidence that the economy is feeling the impact of higher rates.
Gross domestic product data showed the economy shrank in the second quarter and a preliminary estimate from Statistics Canada suggests another contraction in the third quarter.
The labour market has remained relatively resilient since interest rates started to rise in March 2022 as employers maintained their appetite for hiring post-pandemic. But job vacancies have been on the decline this year and Friday’s report suggests job prospects are continuing to dwindle.
Among those who were unemployed in September, a larger proportion stayed unemployed in October than 12 months prior, suggesting “job seekers are facing more difficulties finding employment than a year ago.”
Employment opportunities are expected to become even more sparse as the effect of previous rate hikes increasingly filter through the economy.
"In no way should the Bank of Canada hike again, given everything we know right now," said James Orlando, TD's director of economics. "We think they've done enough. And they should just ... hold steady right now and (let) the economy continue to slow."
The unemployment rate has already risen by 0.7 percentage points this year and Orlando says TD is expecting it to climb to 6.7 per cent in 2024.
"The 0.7 per cent adjustment is big, and it's moving in the right direction with respect to getting the economy into balance. But there's still more to go," Orlando said.
While the Bank of Canada has not fully closed the door to more rate hikes, governor Tiff Macklem has made it clear that the central bank doesn't want to raise rates more than necessary.
During a Senate committee meeting this week, Macklem said the bank opted to hold rates steady in part because it is anticipating a wave of mortgage renewals will further cool the economy.
Canadians who are renewing their mortgages with higher interest rates are forced to cut back elsewhere, slowing spending on goods and services.
The Bank of Canada is hoping this pullback will slow inflation and bring it back to its two per cent target.
So far, inflation has fallen considerably from a peak of 8.1 per cent, reaching 3.8 per cent in September.
But higher borrowing costs are posing a new challenge to families, while the cost of necessities continues to climb rapidly.
In October, Statistics Canada says one in three Canadians reported living in a household that found it difficult or very difficult to meet its financial needs when it comes to transportation, housing, food, clothing and other necessary expenses over the previous four weeks.
While that figure is down slightly from a year ago, it’s still up considerably from October 2020, when 20.4 per cent of Canadians reported the same thing.
This report by The Canadian Press was first published Nov. 3, 2023.
Nojoud Al Mallees, The Canadian Press
Windsor unemployment jumps to 7.1%, highest among cities in Canada
CBC
Fri, November 3, 2023
Windsor's unemployment rate jumped to 7.1 per cent in October, the highest among major cities in Canada, new numbers from Statistics Canada show.
It's also an increase from last month — Windsor's unemployment rate was six per cent in September.
Tashlyn Teskey is the manager of research projects with Workforce Windsor Essex, a workforce and community development board.
She says the result was "a little more shocking than we expected it to be."
The rate "again puts us unfortunately at the the highest unemployment rate in Canada, which we had gotten away from for the last couple months," Teskey said.
But, Teskey says, it's not unexpected for October, when much summer seasonal employment ends and holiday employment hasn't yet started.
And, there's a local factor that might help account for the spike — the Stellantis Windsor Assembly Plant, a major employer, was shut down for retooling for the month.
"So it's nothing to be real concerned about as a long-term change," Teskey said.
Teskey said the organization is also seeing a bit of a decrease in job postings, noting the same thing happened last October.
"It might be due to the increase in minimum wage and maybe some employers that offer minimum wage positions maybe holding off with some of their hiring," she said.
If trends continue, Teskey said they'll likely seethe unemployment number dip in November and December with holiday hiring and as Windsor assembly workers head back to work.
According to Statistics Canada, the economy added about 18,000 jobs in October.
The agency released its October labour force survey Friday, which showed the economy added a modest 18,000 jobs. The national unemployment rate was 5.7 per cent in October, up from 5.5 per cent in September.
October marks the fourth increase in the country's jobless rate over the last six months.
Employment rose last month in construction and information and culture and recreation, but the increase was offset by declines in wholesale and retail trade as well as manufacturing.
CBC
Fri, November 3, 2023
Windsor's unemployment rate jumped to 7.1 per cent in October, the highest among major cities in Canada, new numbers from Statistics Canada show.
It's also an increase from last month — Windsor's unemployment rate was six per cent in September.
Tashlyn Teskey is the manager of research projects with Workforce Windsor Essex, a workforce and community development board.
She says the result was "a little more shocking than we expected it to be."
The rate "again puts us unfortunately at the the highest unemployment rate in Canada, which we had gotten away from for the last couple months," Teskey said.
But, Teskey says, it's not unexpected for October, when much summer seasonal employment ends and holiday employment hasn't yet started.
And, there's a local factor that might help account for the spike — the Stellantis Windsor Assembly Plant, a major employer, was shut down for retooling for the month.
"So it's nothing to be real concerned about as a long-term change," Teskey said.
Teskey said the organization is also seeing a bit of a decrease in job postings, noting the same thing happened last October.
"It might be due to the increase in minimum wage and maybe some employers that offer minimum wage positions maybe holding off with some of their hiring," she said.
If trends continue, Teskey said they'll likely seethe unemployment number dip in November and December with holiday hiring and as Windsor assembly workers head back to work.
According to Statistics Canada, the economy added about 18,000 jobs in October.
The agency released its October labour force survey Friday, which showed the economy added a modest 18,000 jobs. The national unemployment rate was 5.7 per cent in October, up from 5.5 per cent in September.
October marks the fourth increase in the country's jobless rate over the last six months.
Employment rose last month in construction and information and culture and recreation, but the increase was offset by declines in wholesale and retail trade as well as manufacturing.
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