Canadian payrolls continued to grow in October, building on September’s gains and more than offsetting the back‑to‑back job losses seen over the summer. Growth was concentrated in trade‑impacted sectors, with transportation and warehousing, wholesale and retail trade, and manufacturing all posting increases. However, October’s hiring spree was driven largely by part‑time work, which added 85,100 jobs and masked a loss of 18,500 full‑time positions. Most provinces have experienced employment growth so far in 2025, with Ontario’s strong October gains of 55,000 jobs bringing the province back into positive territory following earlier declines.
Helping to pull down the headline jobless rate, the unemployment rate for core‑aged workers (25 to 54) fell to 5.8 per cent in October from 6.0 per cent. Youth employment also improved, as 20,600 new jobs for those aged 15 to 24 helped lower the youth unemployment rate by 0.6 percentage points to 14.1 per cent, following September’s 15‑year high outside of the pandemic.
Despite overall good news in the labour market, long‑term unemployment remains elevated, with nearly one in four core‑aged job searchers out of work for at least six months. The number of people unemployed because of permanent layoffs continued to rise, though it remains below recessionary levels.
The Alberta teachers’ strike impacted the Labour Force Survey (LFS) by increasing the number of hours not worked. Teachers on strike are considered “employed” but “not at work” by the survey, contributing to a decline of 11,600 jobs in the education sector. This effect should reverse once teachers are legislated back to work.
The job market continues to show signs of resilience despite economic uncertainty. This supports the view that Canada can experience positive, though modest, GDP growth in the coming quarters. Along with fiscal stimulus in the federal budget, this lessens the need for further monetary stimulus. As a result, we expect the Bank of Canada to keep rates on hold for the foreseeable future.
Housing Affordability Watch
CMI monitors the latest developments and offers insights on solutions to Canada’s housing affordability crisis
Lessons from the U.S. experience with modular construction
Canada’s housing crisis has sparked renewed interest in modular construction as a faster, more affordable way to build at scale. In the second article of our three-part series, we turn to the United States to understand what decades of experimentation with modular housing can teach us.
Read part two of our analysis in the latest Housing Affordability Watch: Will Modular Construction Be a Game-Changer? Part 2 — Lessons from the U.S. Experience
Missed part one? Read it here: Will Modular Construction Be a Game-Changer? Part 1 — What We Can Learn from Wartime Housing Limited
Independent Opinion
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