Canada's employment situation improved unexpectedly in October 2025, with the economy adding 66,600 net jobs and the unemployment rate declining. This reversed earlier declines seen during the summer months. The jobless rate fell to 6.9% from 7.1% in September, marking a significant improvement. Analysts had predicted job losses of 2,500 and expected unemployment to remain at 7.1%. All employment gains were concentrated in part-time positions, with 85,000 part-time jobs added, while full-time employment decreased by 18,500. The private sector drove the growth, recording its first increase since June. Youth unemployment also saw its first decline since February, dropping to 14.1% from 14.7%. Wholesale and retail trade, along with transportation and warehousing, contributed most to the job gains. The average hourly wage for permanent employees rose to 4.0% from 3.6%, indicating strengthening wage growth.
Employment Gains Concentrated in Part-Time and Private Sector
The 66,600 jobs added in October followed 60,400 gains in September, helping recover most losses from July and August. All October gains came from part-time work, which increased by 85,000 positions, while full-time employment fell by 18,500. The private sector accounted for all growth, marking its first rise since June. Wholesale and retail trade led job creation with 40,700 new positions, followed by transportation and warehousing. Retail and wholesale employ nearly 15% of Canada's workforce, making them the largest employment sector. The services sector, which employs four out of every five Canadians, remained the dominant contributor. Employment among core-aged workers (25 to 54 years) increased by 38,800 jobs.
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