The gains were broad-based, with goods-producing industries and the services sector adding jobs, according to data released by Statistics Canada on Friday. Manufacturing, construction, lodging and food service industries led the way, while the number of people working in retail and wholesale trade and natural resources declined. The increase in hiring was more than enough to offset the job losses between May and September. Almost all of the net new jobs were full-time, and in fact almost three-quarters of them came from the private sector. It’s the first time it’s happened since March. Despite the job growth, the unemployment rate was steady at 5.2%, “but that was because a lot more Canadians were looking for work,” TD Bank economist Rishi Sondhi said of the data. “[That’s] a healthy sign for growth.” Wage gains also picked up pace, with average hourly earnings reaching $31.94 during the month. This is up 5.6 percent on last year. Two-thirds of people making $40 an hour reported getting a raise in the past year. That compares to about half of those making $20 or less. While the wage increases are good news for workers, they are a double-edged sword for the Bank of Canada, which is trying to turn inflation into submission. Higher incomes will add to inflationary pressure on spending and possibly force the central bank to raise interest rates even more than already “Until this point, wages haven’t looked particularly worrisome in Canada,” said economist Royce Mendes with Desjardins. “But the more this measure heats up, the more pressure there will be on the Bank of Canada to continue the rate hike cycle for longer than previously expected.” Despite wage increases, more and more households are struggling to keep their heads above water. Over a third of households reported “difficulty meeting financial needs” during the month. Two years ago, only one in five said this.
