Canada's Surprise Job Gains Signal Economic Resilience Amid Tariff Challenges

In an unexpected turn, Canada's economy registered a staggering increase of 60,400 jobs in September, nearly compensating for the losses recorded the previous month, according to data published on Friday. Despite the gain, the nation's unemployment rate sustained its multi-year high, remaining at 7.1%, the same as August's figures which marked a nine-year high beyond the pandemic period.

Statistics Canada revealed that while analysts had anticipated modest job growth of just 5,000 and an uptick in the unemployment rate to 7.2%, actual numbers shattered predictions. The monthly average growth for this year reached approximately 24,000 jobs, falling short by almost 10,000 compared to the preceding two-year trend. This slowdown is attributed to U.S. tariffs driving job cuts and deterring new hires.

Full-time positions led the September employment surge, spreading across 10 out of 16 industries. However, indicators of underutilization, like underemployment among youth — climbing to 14.7%, the highest in 15 years — and skill mismatch among immigrants, highlighted burgeoning labor challenges. Manufacturing showed promise, boasting a substantial job increase of 27,800, marking a positive shift after months of tariff-related setbacks.

(With inputs from agencies.)