Canada Adds 14,500 Jobs in October

Canada's economy added 14,500 jobs in October, falling short of the expected 27,000, while the unemployment rate remained unchanged at 6.5%. The labor participation rate declined to 64.8%, marking its lowest point since December 1997, indicating ongoing softness in the labor market. Wage growth accelerated, with average hourly earnings rising 4.9% year-over-year, reflecting some positive trends amidst the overall stagnation. Analysts suggest that the mixed employment data may influence the Bank of Canada's interest rate decisions, with a possibility of a 50 basis point cut in December. Notably, youth unemployment declined to 12.8%, and employment in the private sector showed some growth, particularly in manufacturing. The sluggish job growth highlights the challenges posed by high inflation and interest rates on the Canadian economy.