Canada's Economy Experiences Third Consecutive Month of Job Losses Amid Trade Uncertainty
Canada's economy recorded its third consecutive month of job losses in October, with a decrease of 4,700 jobs and an unemployment rate rising to 6.7%. This trend follows the breakdown of trade talks with the U.S. in August, which has heightened uncertainty and prompted businesses to implement hiring freezes and layoffs. The private sector saw a significant decline of 53,000 employees, marking the first such drop since February. These job losses are particularly noted in sectors like trade, manufacturing, and technology. Wage growth remains subdued at 2.2%, falling below the headline inflation rate of 3.1%, indicating a cooling job market. The Bank of Canada is now under increased pressure to maintain its key interest rate in December, with the odds of a rate hike decreasing to 33%.
