OTTAWA
Canada’s unemployment rate edged up to 6.7 per cent in October, a six-month high, as the economy lost a net 4,700 jobs, Statistics Canada reported on Friday.
The jobless rate increased from 6.5 per cent in September, marking the highest level since it was 6.9 per cent in April.
The October report highlights a continued weakness in the labour market in Canada that has failed to post any job gains on average this year as trade tensions between the US and Canada worsened and businesses hunkered down to save costs.
All the job losses were concentrated in full-time employment, which shrank by 18,100 positions, and were almost completely led by a loss of 52,500 private sector employees.
This was the first decline in the private sector since February, Statistics Canada said.
Analysts polled by Reuters had forecast an increase of 13,600 jobs for the month, following a loss of 68,300 jobs in September, and had predicted the unemployment rate would stay unchanged at 6.5 per cent.
On an average monthly basis, the Canadian economy has lost 4,590 jobs this year so far, in contrast to average gains of 17,606 in 2025 and 33,675 in 2024.
The total number of jobs lost this year now stands at 46,000.
Employment in wholesale and retail trade contracted by 28,800 jobs, posting the biggest decline in October, followed by transportation and warehousing, where employment declined by 10,100 positions.
Employment in construction increased by 16,000 in October.
The unemployment rate among youth, those aged 15 to 24 years, rose 0.7 percentage points to 13.7 per cent last month.
This was followed by a rise in the jobless rate among people aged 55 and older to 5.5 per cent.
Growth in average hourly wages for permanent employees, a closely watched measure of inflation pressures, slowed to 2 per cent year-on-year in October, from 2.3 per cent in September, Statistics Canada said.
More than one out of every four persons in the employable population of 15 years and older found it difficult to meet their financial needs in terms of transportation, housing, food, clothing and other necessary expenses over the previous four weeks, Statistics Canada said.
The economy has faced headwinds with escalations in the trade war with the United States after talks broke down in late August and a fresh round of tariffs by President Donald Trump.
The Bank of Canada also raised its key interest rate last week in a bid to reduce the risk that high energy prices could spill over and become generalized inflation.
e2gold.ca reported in November that a Democratic-controlled U.S. Congress is unlikely to ease trade pressure on Canada, experts warn.
This story was written by the e2gold.ca newsroom from reporting by BNN Bloomberg, Toronto Star and The Lethbridge Herald. Quotes are checked word for word against that reporting.