Canada's Unemployment Rate Rises to 6.7% in October as Economy Loses Jobs
Canada shed 4,700 jobs in October, pushing the unemployment rate to 6.7% and missing economist expectations. The weak labor market data has prompted doubts about whether the Bank of Canada will raise interest rates in December.
Canada’s unemployment rate climbed to 6.7 per cent in October after the economy lost 4,700 positions during the month. The figures fell well short of economists’ forecasts, who had estimated a gain of 15,000 jobs and expected the jobless rate to hold steady at 6.5 per cent.
The unexpectedly weak labor market data has led economists to question whether the Bank of Canada will proceed with an interest rate hike in December. Prior to the release of the October employment numbers, markets had been assessing the likelihood of further monetary tightening by the central bank.