Canada lost 4,700 jobs in October; unemployment rises to 6.7%

Canada lost about 4,700 jobs in October, and the unemployment rate rose to 6.7 percent, according to Statistics Canada's monthly jobs report released on Friday, November 6. Economists had expected the country to add jobs.

The main numbers

• Unemployment rate: 6.7 percent, up 0.2 points from September.
• Jobs: down about 4,700 overall. Economists polled before the release had expected a gain of around 13,600.
• Full-time work: down about 18,000 jobs.
• Private sector: down about 52,500 jobs, which means other areas, such as public-sector jobs and self-employment, grew.
• Employment rate (the share of adults with a job): 60.5 percent, the third monthly drop in a row.

Who is hit hardest

Young Canadians are struggling the most. Unemployment for people aged 15 to 24 rose to 13.7 percent. Among provinces, Alberta and Ontario both reached 7.3 percent and saw the largest increases. Quebec's rate fell to 5.7 percent, and Manitoba had the lowest rate among the provinces at 5.0 percent.

The bigger picture

October was the third weak month in a row. From August through October, Canada lost close to 115,000 jobs. Many economists link the slowdown to U.S. tariffs on Canadian goods, which have hurt manufacturing and trade-dependent industries.

Part of the rise in unemployment also came from more people looking for work: about 33,000 more Canadians joined the search in October. People are only counted as unemployed if they are actively looking for a job.

Why it matters

Rising unemployment puts pressure on household budgets and on the federal government's plans. It also matters for interest rates: the strength of the job market is one of the main things the Bank of Canada weighs when it decides whether to raise, hold or cut rates.

What to watch next

Statistics Canada releases its next jobs report, for November, on December 4.