Canada's jobless rate unchanged at multi-year high of 7.1 per cent

Canada's economy posted a surprise 60,400 net job gains in September, almost entirely reversing the losses of the previous month, data showed on Friday, though the unemployment rate remained at a multiyear high.

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The jobless rate held at 7.1 per cent from August, when the rate hit a nine-year high outside of the pandemic years.

Analysts polled by Reuters had forecast job gains of 5,000 and the unemployment rate to edge up to 7.2 per cent, Statistics Canada said.

Canada's employment gains this year have averaged about 24,000 jobs per month, almost 10,000 less than seen in the previous two years, as US tariffs have either forced job cuts or dissuaded employers from hiring more.

The employment increase in September was completely led by full-time work and it increased in 10 out of 16 industry groups, StatsCan said.

However, a few metrics showed the impact of low hiring by companies and increasing slack, or underutilized labour force, in the economy.

The unemployment rate among youth or those in the age bracket of 15 to 24 years edged up to 14.7% in September, the highest rate in 15 years. The youths represent around 14% of the total labour force in Canada.