The Canadian labor market showed a surprising recovery in September, adding 60,400 jobs versus expectations of a small decline. The unemployment rate held steady at 7.1%, marking stability after two months of job losses.
Full-time employment jumped by more than 100,000, while part-time employment fell by nearly 50,000, suggesting companies are returning to a steady workforce.
Most of the growth came from workers aged 25–54, especially women. However, the youth unemployment rate rose to 14.7%, the highest level in more than a decade outside of the pandemic.
The manufacturing sector posted its first growth since January with 28,000 jobs added, driven by gains in Ontario and Alberta.
Economists remain cautious, with CIBC stressing that while September’s numbers were strong, the 7% unemployment rate still reflects significant economic spare capacity.
