Unemployment rate dips in October, driven by part-time work
Canada’s unemployment rate dropped last month to 6.9 per cent, defying expert predictions thanks to a surge in retail and wholesale jobs. The economy added 67,000 positions in October.
Canada’s unemployment rate dropped last month to 6.9 per cent, defying expert predictions thanks to a surge in retail and wholesale jobs. The economy added 67,000 positions in October.
While both full-time and part-time work increased annually, the rise was largely driven by part-time positions, with an influx of work in wholesale and retail trade.
The sector added 41,000 jobs last month, followed by increases in transportation and warehousing, information, culture and recreation, and utilities.
Meanwhile, the construction sector saw a loss of 15,000 jobs, continuing a steady decline since January.
“Despite the employment increase in October, total actual hours edged down (-0.2 per cent) in the month as an elevated number of employees lost work hours due to labour disputes occurring during the Labour Force Survey reference week (October 12 to 18),” writes Statistics Canada.
“An estimated 87,000 employees across the provinces lost work hours due to labour disputes during this period (not seasonally adjusted). This was particularly notable in Alberta where a teachers’ strike, and a subsequent lock-out, led to the closure of most elementary and secondary schools in the province.”
Employment rose slightly among core-aged men for a second consecutive month, while the rate among core-aged women remained relatively the same.
Youth employment rose by 21,000 jobs in October, the first increase since January, bringing its employment rate up 0.4 per cent.
“Despite this increase, the youth employment rate remained significantly below the recent high of 59.6 per cent recorded in March 2023, as youth continue to face difficult labour market conditions,” it said.
Ontario led overall employment growth last month, with its first increase since the summer. Employment also increased in Newfoundland and Labrador.
However, Nova Scotia and Manitoba both saw declines in employment, while Quebec remained stagnant for the fourth consecutive month.
The agency noted that 27.7 per cent of Canadians aged 15 and older were living in a household that “found it difficult to meet its financial needs in terms of transportation, housing, food, clothing and other necessary expenses.”
However, that cohort has been on a downward trend since the high recorded in October 2022.
“In October 2025, people living in rented dwellings remained more likely to experience household financial difficulties than those living in a dwelling owned by a household member,” it said.
“Youth aged 15 to 24 were about as likely as core-aged (25 to 54 years old) people to belong to a household that found it difficult or very difficult to meet its financial needs.”
People aged 55 and older were the least likely to live in a household facing this problem.