Canada Unemployment Unchanged In October At 5.5%

Job creation stalled in Canada in October after two months of increases, leaving the unemployment rate unchanged at 5.5 percent, according to government data released Friday.

About 1,800 jobs were shed in the month and although analysts had expected an uptick in job numbers, the unemployment rate was in line with forecasts.

On a year-over-year basis, employment has still grown by 443,000 or 2.4 percent, said Statistics Canada.

But that contrasts with "much softer" economic growth (GDP), noted CIBC analyst Royce Mendes said in a research note.

"After a couple of months of outsized gains, Canada's labour market didn't get the job done in October," he said, predicting a further slowdown in employment growth ahead.

According to Statistics Canada, manufacturing and construction industries shed a combined 44,000 jobs in October, while finance, insurance, real estate, rental and leasing sectors added 18,000 jobs.

The number of self-employed workers decreased by 28,000, while the public sector added 29,000 jobs, continuing an upward trend that started in January.

Most of the new jobs were in westernmost British Columbia and the Atlantic island province of Newfoundland.

Employment was down for men aged 25 to 54, while up for all aged 55 or older.

amc/bgs