- Doug Porter, BMO chief economist
Canada's unemployment rate increased by a notch in September, as the nation's economy added a tepid 12,100 jobs in the reported month. Even though, the employment change reading appeared to be better than economists expectations for 10,500, those job gains were in part-time positions. The number of full-time jobs plunged by 61,900 in September. As a result, the Canadian unemployment rate climbed to 7.1%, compared with 7.0% in August. Overall, Statistics Canada reported that job growth in Canada has been slowing all year, from a rate of 63,000 jobs in the first quarter to less than 31,000 in the three months through September. A precipitous decline in oil prices has contributed to the country's weak economic output and tepid job growth. The Bank of Canada has slashed rates twice this year in an attempt to kick-start the economy, after Canada dipped into a mild recession in the first half of this year. The central bank's next rate decision is due October 21.
Moreover, economic data have gathered greater significance ahead of the election on October 19, with the Liberals and NDP blaming the Conservatives for mismanaging the Canadian's economy.
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