Canada's unemployment rate rose to 5.7 percent last month as job opportunities dwindled in an economy weighed down by high interest rates.
Statistics Canada released its labor survey for October last Friday, which showed the economy added a modest 18,000 jobs. This increase is not enough to prevent the unemployment rate from rising as the rate of job creation lags behind population growth. Canada's unemployment rate was 5.5 percent in September.
October marked the fourth increase in the unemployment rate over the past six months.
Wages continued to grow rapidly, but the pace of growth slowed last month compared to September, with average hourly wages rising 4.8 percent to $34.08 from a year ago.
The Bank of Canada chose to keep interest rates at five per cent at its last two decision meetings, mainly due to growing evidence that the economy is feeling the effects of higher rates.
GDP data showed that the economy shrank in the second quarter and preliminary estimates from Statistics Canada.
Job opportunities are expected to become more limited as the effects of previous rate hikes permeate the economy.
During a Senate committee meeting this week, Bank of Canada Governor Tiff Macklem said the central bank chose to keep rates on hold because it expects a wave of renewed lending to break the economy. So far, inflation has declined significantly from a peak of 8.1 percent, reaching 3.8 percent in September.
