macro

Canada's Job Market Keeps Weakening as Unemployment Hits 6.7%

Canada shed 4,700 jobs in October, lifting the jobless rate 0.2 point to 6.7%, above forecasts, Market Talk reports.

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what happened

According to Market Talk, Canadian employment fell by 4,700 in October, extending a loss of 110,000 jobs over the previous two months. More people looked for work, pushing the unemployment rate up 0.2 percentage point to 6.7%, its highest since April. Economists had expected no change for the month.

The decline was led by full-time roles and private-sector employment. A rise in public-sector jobs softened the drop, but this may be temporary support tied to provincial and municipal elections. The economy has now lost about 45,900 jobs in 2026, although employment in October was still up 16,500 from a year earlier.

why it matters

A weakening labor market reduces the chances of tighter Bank of Canada policy and can weigh on the Canadian dollar. For investors, it signals slower economic momentum, which matters when assessing CAD and Canadian bond yields.

market impact

Canadian dollar: weak jobs data cuts rate expectations, pressuring CAD

  • Canadian dollar pressure down — a weaker labor market reduces expectations for tighter Bank of Canada policy

tags

instruments

CADUSD/CAD ↗Canadian government bondsBank of Canada rate expectations

on polymarket

sources

  1. Canadian Job Market Continues to Weaken — Market Talk, 6 November 2026 at 13:38 UTC

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