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Oct 11, 2024 4:00 PM - Connect Newsroom - Debby Rai with files from The Canadian Press

Canada’s September jobs data expected to show slight rise in unemployment amid slowing economy

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Economists polled by Reuters are forecasting the Canadian economy added 27,000 jobs in September and the unemployment rate to have ticked higher to 6.7 per cent. (Photo: The Canadian Press)

Statistics Canada will release its latest labour force survey this morning, providing a clearer picture of how Canada’s job market performed in September.

Economists surveyed by Reuters predict the country added about 27,000 jobs last month, while the national unemployment rate is expected to edge up to 6.7 per cent from 6.6 per cent in August. In August, the economy added 22,000 jobs, marking continued but modest growth in employment.

The new data will be closely watched as the Bank of Canada also prepares to publish its business outlook survey and consumer expectations report later today - both key indicators ahead of the central bank’s next interest rate decision on October 23.

The Bank of Canada has already cut its key policy rate three times this year, each by a quarter of a percentage point, bringing it to 4.25 per cent. Economists say the latest labour and confidence data will help determine whether another rate cut is on the table as the bank balances slower growth and persistent inflation pressures.

The employment outlook will also be watched closely in Western Canada, including Surrey, Calgary and Edmonton, where rising costs and slower hiring have particularly affected newcomers and small business sectors that depend heavily on service and logistics jobs.

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