Despite the Canadian economy adding 12,000 jobs in September, the unemployment rate climbed to 7.1%, its highest level since February 2014 as more people entering the labour force. The September jobs report was the last major piece of economic data before the federal election held on Oct. 19.
According to Statistics Canada, the number of Canadians working in the education sector increased marginally. This resulted in a drop in the seasonally adjusted result.
Increased part-time work added 74,000 jobs, while full-time employment fell by 62,000. The Bank of Canada has cut its key interest rate twice this year in an effort to help the economy which contracted in the first half of the year mostly due to the drop in oil prices.
The central bank says future indicators of business activity have improved, supported by a generally positive outlook for the U.S. economy and a weaker Canadian dollar. However, persistent weakness in commodity prices are continuing to have an effect on the economy, dampening the outlook for firms tied to the resource sector.
The September, the labour force survey confirmed the number of self-employed increased by 31,000, while public sector employment fell 29,000. The number of private sector employees climbed by 10,000.