Canada Loses 68,000 Jobs in September as Unemployment Rate Rises to 6.5%

Canada’s job market lost 68,000 jobs in September, pushing the unemployment rate up slightly from 6.4 per cent to 6.5 per cent, according to Statistics Canada.

The decline marks the second consecutive month of job losses. Canada lost approximately 42,000 jobs in August, wiping out all employment gains recorded so far this year.

According to the report, the largest employment declines were recorded in educational services, health care and social assistance. Statistics Canada said the declining number of international students coming to Canada is one of the key factors contributing to job losses in educational services.

The latest employment report is the final major labour market indicator ahead of the Bank of Canada’s monetary policy decision later this month.

Money markets expect the central bank to hold interest rates steady, despite earlier expectations of a possible rate hike. However, markets anticipate a potential 25-basis-point increase in interest rates in December.