Canada's Job Growth Exceeds Expectations in September

Canada's economy added 47,000 jobs in September, exceeding analyst expectations and marking the first unemployment rate decrease since January, now at 6.5%. This unexpected improvement was driven by gains in youth, women aged 25-54, and private sector full-time employment, contrasting prior forecasts and revealing a mixed labor market trend. Despite this positive development, the employment rate continues to fall due to rapid population growth outstripping job creation, while the participation rate also dipped slightly. The Bank of Canada has cut rates three times this year as inflation aligns with its 2% target, and mixed employment data may influence future rate cut decisions. Wage growth for permanent employees slowed, and sectors like wholesale, retail trade, and professional services saw the most job gains. Analysts initially anticipated a larger interest rate cut, but following the report, predictions for such cuts have been adjusted downward.