Windsor unemployment rate up in October to 6.9%

FSMNews

The unemployment rate ticked down to 4.1%, its lowest level since December 2000.

Non-farm payrolls grew by 261,000 jobs, the most in about three years, but fewer than the 310,000 that economists had expected, the Department of Labor's employment situation report showed.

The sharp moderation in job growth in September was blamed on hurricanes Harvey and Irma, which devastated parts of Texas and Florida in late August and early September, leaving workers, mostly in lower-paying industries such as leisure and hospitality, temporarily unemployed.

Toronto's unemployment rate fell from 6.1 per cent in September to 5.8 per cent in October.

Additionally, wages rose from the same time past year by 2.4 percent but slowed somewhat from last month.

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"The seemingly positive headline in the household survey masked some bearish details, as the one-tenth decline in the unemployment rate occurred amid a 0.4 percentage point plunge in the labor force participation rate, the biggest monthly decline in four years", Duncan said.

Regionally, Quebec posted the largest increase with a gain of 18,400 jobs, while Alberta added 11,900.

That was the largest gain since July previous year, but was below economists' expectations for an increase of 310,000 jobs. All of the net new jobs added in October were in the private sector and of the full-time variety, which tend to offer higher pay and steady benefits compared with part-time work. Still, the data probably does little to change expectations the Federal Reserve will raise interest rates next month.

This new batch of Canadian jobs data might offer some comfort to the Bank of Canada, which contends that slack remains in the labor market due to tepid wage gains and other factors. A tighter labor market should lead to better paychecks and ultimately stoke consumer inflation.

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