Robust September Job Growth Raises Questions
Canada's job market rebounded in September, adding a surprise 60,000 positions and defying expectations of a slowdown. The unexpected hiring surge has economists divided on whether the Bank of Canada will proceed with another interest rate cut later this month.
The September employment data showed broad-based gains, with increases in both the private sector and self-employment. The unemployment rate held steady at 7.1%, even as the labor force expanded.
Impact on Bank of Canada Policy
The strong jobs report comes after significant losses in July and August, raising questions about the timing of the central bank's next policy move. Some analysts believe the robust figures could prompt the Bank of Canada to hold off on further rate cuts, as policymakers weigh the implications for inflation and economic growth.
"Solid jobs figures lean toward a pause at the October meeting," said TD Bank senior economist Andrew Hencic. However, the still-elevated unemployment rate and signs of tame underlying inflation may still sway the central bank toward another reduction, he added.
TL;DR
- Canada's job market rebounded in September, adding 60,000 positions and defying expectations
- The unexpected hiring surge has economists divided on the Bank of Canada's next move
- Some analysts believe the strong jobs report could prompt the central bank to pause rate cuts
- Others note the high unemployment rate and subdued inflation may still push the BoC to cut rates again