Wage growth and core-aged employment climb, but skills mismatches and youth joblessness persist
A surge in full-time employment drove Canada’s labour market to a stronger-than-expected rebound in September, yet the unemployment rate held steady at 7.1 percent as more Canadians entered the workforce, according to Statistics Canada.
This increase of 60,000 jobs, primarily in full-time positions, partially offset declines from the previous two months and suggests ongoing resilience despite economic headwinds.
As reported by Statistics Canada, core-aged workers (25 to 54 years) were the main beneficiaries, with employment rising by 76,000 for women (+1.2 percent) and 33,000 for men (+0.5 percent)—a notable rebound after previous declines.
The employment rate for core-aged women climbed to 80.4 percent, while core-aged men reached 86.1 percent.
In contrast, employment among those aged 55 and older fell by 44,000 (-1.0 percent), with their employment rate dropping to 33.6 percent.
Youth employment remained largely unchanged, but the youth unemployment rate edged up to 14.7 percent, the highest since 2010 outside of the pandemic years.
Sectoral gains were led by manufacturing, which added 28,000 jobs (+1.5 percent) for its first increase since January, as well as health care and social assistance (+14,000; +0.5 percent), and agriculture (+13,000; +6.1 percent).
Public sector employment also grew by 31,000 (+0.7 percent), while private sector and self-employment saw smaller increases. However, wholesale and retail trade experienced a decline of 21,000 jobs (-0.7 percent).
Regionally, Alberta posted the largest employment gain, adding 43,000 jobs (+1.7 percent) and lowering its unemployment rate to 7.8 percent.
New Brunswick and Manitoba also saw employment growth, though both provinces experienced a rise in unemployment rates as more people joined the labour force.
Employment in Quebec and Ontario remained relatively stable.
Wage growth continued, with average hourly wages rising 3.3 percent year-over-year to $36.78, as per Statistics Canada.
Despite the positive headline numbers, underlying labour market slack persists.
According to Statistics Canada, the share of core-aged workers with postsecondary credentials in jobs unrelated to their education or training rose to 16.4 percent, and overqualification among recent immigrants increased to 34.7 percent.
These indicators suggest ongoing skills mismatches and underutilization of talent, factors that can influence workforce planning and benefits design.
As reported by Reuters, analysts noted that while the robust job gains may delay further interest rate cuts by the Bank of Canada, persistent slack and high youth unemployment could still support additional monetary easing in the near term.
