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Canada’s Unemployment Rate Rose To 5.7% In October

Canada’s unemployment rate rose 0.2 percentage points to 5.7% in October as the economy shows signs of slowing.

Statistics Canada said October marked the fourth monthly increase in Canada’s unemployment rate over the last six months.

Overall, employment was little changed during October as the economy added a total of 18,000 net new jobs, an increase of 0.1% from September when the unemployment rate was at 5.5%.

Employment rose in construction (up 23,000) and in information, culture and recreation (up 21,000). However, those gains were offset by declines in wholesale and retail trade employment (down 22,000) and manufacturing (down 19,000).

Employment increased in four provinces in October, led by Alberta (up 38,000), though it declined in most provinces, with Quebec recording a loss of 22,000 positions.

Total hours worked was virtually unchanged in October but up 2.1% on a year-over-year basis, said Statistics Canada.

On a year-over-year basis, average hourly wages increased 4.8% to $34.08 in October, following an increase of 5% seen in September.

The rise in unemployment is the latest sign that the Canadian economy is slowing as the Bank of Canada holds its trendsetting overnight interest rate at 5% to help lower inflation.

Interest rates in Canada are now at their highest level in 22 years.