Canada’s Labour Market Participation Rate Hits Multi-Decade Low

Canada’s labor market showed signs of stability in October, with employment holding steady and the unemployment rate remaining unchanged at 6.5%, according to the latest data from Statistics Canada. The economy added a modest 15,000 jobs (+0.1%) in October, following a more substantial increase of 47,000 (+0.2%) in September.

Despite the slight employment gain, the employment rate declined by 0.1 percentage points to 60.6%, marking the sixth consecutive monthly decrease. This trend reflects ongoing demographic pressures, as population growth continues to outpace job creation.

Youth employment was a bright spot in the report, with male workers aged 15 to 24 seeing an increase of 25,000 jobs (+1.8%). However, this was partially offset by a decline of 15,000 jobs (-0.8%) among women aged 55 and older. Sectoral performance was mixed, with business, building and other support services adding 29,000 jobs (+4.2%), while finance, insurance, real estate, rental and leasing shed 13,000 positions (-0.9%).

Wage growth accelerated, with average hourly wages rising 4.9% year-over-year to $35.76, up from 4.6% growth in September.

The labor force participation rate fell 0.1 percentage points to 64.8%, reaching its lowest level since December 1997, excluding pandemic years. This decline reflects both demographic shifts and cooling labor market conditions.

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Information for this story was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.