Canada's labour market lost momentum in October, according to Statistics Canada's (StatsCan) Labour Force Survey released Friday. The economy shed jobs for a third straight month, which helped push the unemployment rate up to 6.7%.

• Weak hiring continues. Employment was down for a third straight month after losses of 68,000 in September and 42,000 in August. The unemployment rate has now risen two months in a row, though it remains below April's 6.9% peak.
• Private sector hiring fell, while public sector hiring rebounds. Private-sector employment fell by 53,000, while public-sector jobs increased by 50,000. The wholesale and retail trade industry lost 29,000 jobs, while construction and education added 16,000 and 15,000, respectively.
• Unemployment for those aged 15 to 24 jumped by 0.7 percentage points to 13.7%. For core-age workers (25 to 54), it held steady at 5.8% for men and 5.3% for women. Wages rose by 2.2% from a year ago.
• Tariffs were likely a drag on hiring. StatsCan does not link job changes to tariffs. However, Ontario's unemployment rate rose to 7.3%, Alberta lost 24,000 jobs, and the October manufacturing PMI showed factory employment falling.
• The Bank of Canada (BoC) now faces a tougher call. The BoC raised its policy interest rate to 2.50% on October 28, citing inflation near 3%. Softer jobs and slow wage growth may give it reason to proceed cautiously.

The report shows a labour market with little room to grow. Modest wage gains limit how much higher prices households can absorb, which the BoC must weigh against elevated inflationary pressures. Progress on US trade talks could ease pressure on exporters and hiring.

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