Canada's economy added 10,000 jobs in September, mostly in full-time employment, Statistics Canada said on Friday. The jobless rate remained at 6.2 per cent in September.
“Canada's job market was ho-hum in September, in line with signals of a moderation in growth. It still churned out a respectable rise in September employment, and did a flip flop in the details that reversed a perverse reading the prior month,” wrote CIBC Capital Markets Chief Economist Avery Shenfeld in a report to clients.
The goods producing sector gained a net 10,500 jobs, mostly in construction. The services sector shed a net 500 jobs, mostly in the information, culture and recreation sector.
Meanwhile, wage growth accelerated at its fastest pace in over a year in September, keeping alive the possibility that the Bank of Canada could hike interest rates for a third time by the end of the year.
Average hourly wages for permanent employees rose 2.2 per cent last month from a year ago, Statistics Canada said in its jobs report on Friday.
The acceleration, which was the fastest annual pace since June 2016, suggested there may be a recovery in wage growth, which has been weak despite strong labour market gains over the past year and is being closely watched by the Bank of Canada.
Analysts said the growth in wages was more encouraging than September's overall job creation, which was below forecasts and pointed to a cooling economy over the second half of the year.
The Bank of Canada has raised interest rates twice this year, spurred by strong economic growth that has put Canada at the top of the Group of Seven nations.
While expectations for a third rate hike later this month have dwindled following cautious comments from policymakers, markets placed the odds of an increase at 18 per cent after the jobs report, compared to 12.2 per cent before.
"I think this is going to reinforce the Bank of Canada's expectations that we're spiraling upward on wage and price pressures in the Canadian economy," said Derek Holt, vice president of economics at Scotiabank.