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Canadian economy created 31,000 jobs in October, unemployment rate drops

OTTAWA — Statistics Canada says the economy added 31,000 jobs in October.

The unemployment rate was 6.7 per cent, down from 6.9 per cent in September, to mark the fifth consecutive monthly decline in the rate.

The report, which can be seen here, showed:

• After returning to its pre-pandemic level in September, employment held steady in October.
• Employment increases in a number of industries, including retail trade (+72,000), were offset by declines elsewhere, including in accommodation and food services (-27,000).
• Gains among private-sector employees (+70,000) were partially offset by declines in self-employment (-38,000).
• The number of employed people working less than half their usual hours fell 9.7 per cent (-100,000) in October but remained 14.5 per cent higher than in February 2020.
• Among people of core working age (25 to 54 years), employment rose by 53,000 (+0.4 per cent), all in full-time work.

Tanya Gullison, chief revenue officer of Toronto-based LHH, provided commentary on the survey findings:

“A significant piece of returning to the workplace will be the need to address labour imbalances and recalibrate workforce strategies to attract and retain employees,” she said. “As the holiday season approaches, we anticipate a surge in hiring.”

“The current labour shortage means that employers will be looking for ways to attract employees through lucrative/competitive wages and additional benefits. With this hiring shift in the Canadian labour market, employee needs and employer expectations, must be aligned. Companies need to go further than monetary incentives and provide attractive employee benefits and growth opportunities that address diverse needs and prioritize employee mental health and well-being.”

October marked the closure of the Canada Recovery Benefit, which offered support to Canadians affected by public health lockdowns, Gullison added.

“As more Canadians shed their reliance on government subsidies, we should see an increase in Canadians returning to the job market, especially in the hardest hit industries.”

With files from the Canadian Press