Canada adds net 157,100 jobs in Sept, unemployment rate falls to 6.9%

·3 min read
FILE PHOTO: A woman walks past a "Help wanted" sign at a retail store in Ottawa

TORONTO (Reuters) - The Canadian economy added a net 157,100 jobs in September, all of them accounted for by full-time positions, and the jobless rate fell to 6.9%, Statistics Canada said on Friday.

Analysts polled by Reuters had forecast the economy would gain 65,000 jobs in September and for the unemployment rate to fall to 6.9% from 7.1% in August.

STORIES:

Market reaction: CAD/

COMMENTARY

JIMMY JEAN, CHIEF ECONOMIST AT DESJARDINS GROUP

"It's a pretty good jobs report. You look at full time employment and that's really a very pleasant number -- nearly 200,000, so that's very strong metrics. It's very positive."

"It's very solid and shows that Canada is doing well in that fourth wave. We are inching towards having fully recovered the pandemic losses unemployment. Job vacancies are very high, so that's also very constructive for hiring going forward."

"The Bank of Canada has yesterday alluded to the job market returning back to health, so I think it sets the stage for potentially them switching to reinvestment phase on QE."

DEREK HOLT, VICE PRESIDENT OF CAPITAL MARKETS ECONOMICS AT SCOTIABANK

"I think it reinforces expectations for the Bank of Canada to shift gears to the reinvestment phase of its QE programs with the upcoming meeting. We're now at a full recovery on jobs, but with still a fairly modest amount of slack leftover (in other areas).

"Full-time strong job growth drove a pretty large gain in hours worked of over 1%, so that's very good for GDP and that suggests a recovery as well... not only in terms of Q3, but also the way the math hands off to Q4, so, overall, a very good report."

"We went through a bit of a disappointment in the first half with the negative revisions to GDP and a mild contraction in the second quarter... (Bank of Canada Governor Tiff Macklem) is still generally on the optimistic side... He's emphasizing a rebound in the second half, and all these numbers that we're getting now tend to reinforce that - GDP, jobs, hours worked. We're on the upswing now."

ANDREW KELVIN, CHIEF CANADA STRATEGIST, TD SECURITIES

"We had a big increase in the participation rate which is very good to see. Even with the big increase in the participation rate obviously we had the unemployment rate fall."

"The Bank of Canada is still going to want to see more improvement from here because their goal isn't just to get back to the pre-pandemic jobs number it was to get back to the pre-pandemic employment population ratio. So they are going to see a little bit more work to be done in order to get back to where they would see trend employment ... but it is obviously very encouraging, particularly in light of some of the softer prints we saw earlier in Q3 across a variety of metrics.

"It's a sign the economy continues to recover."

(Reporting by Fergal Smith, Steve Scherer and Maiya Keidan; Editing by Denny Thomas)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting