Canada Adds 67,000 Jobs in October; Desjardins Says Strength Likely Keeps BoC on Hold

09:53 AM EST, 11/07/2025 (MT Newswires) -- Canada's labour market surprised to the upside in October, creating 67,000 jobs and offering "finally some good news on the Canadian economy," Desjardins economist Royce Mendes said, though he added the strength likely keeps the Bank of Canada on hold next month rather than cutting again.

He added, this reinforces the revised Desjardins call that the Bank of Canada moves back to the sidelines next month, at least until 2026.

According to the Labour Force Survey, Mendes noted, the economy created 67,000 new jobs in October, sailing past estimates for a modest contraction in employment. But, he said, hiring was "somewhat narrowly based", focused in the retail and transportation/warehousing industries. And most of the new jobs also showed up in Ontario, although Quebec and Alberta posted gains too. "Other details weren't rosy either, with all of the hiring apparently in part-time work," he added.

Mendes noted an acceleration in wage growth coincided with the robust employment gains during the month. The annual rate of average hourly earnings rose to 3.55%, up from 3.29% in September. Manufacturing wages posted a strong monthly reading, continuing a trend that began earlier this year. This comes as the factory sector has seen a rebound in employment in the past few months.

"It's too early to tell," said Mendes, "but this could end up being the first sign of recovery for an economy that's been reeling. This reinforces our revised call that the Bank of Canada moves back to the sidelines next month, leaving rates unchanged after easing in September and October. However, uncertainty remains high and we still see material downside risks in 2026 which could require further action."

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