Canadian Dollar Hits 18-Month Low After Surprise 68,300 Job Losses in September

[Nishant]

Canada's economy shed 68,300 jobs in September, a second consecutive monthly decline that wrong-footed economists and sent the Canadian dollar to its weakest level in 18 months. The numbers The September losses followed a 42,000-job decline in August, while economists had forecast a gain of 9,200, according to Reuters. The unemployment rate edged up to 6.5 per cent from 6.4 per cent in August, returning to its level from the start of the year. The losses were concentrated in the public sector, with educational services down 35,000 positions, followed by healthcare and manufacturing. Quebec lost 49,000 jobs, while Ontario and British Columbia each lost 20,000; Alberta added 23,000. Youth aged 15 to 24 lost 48,000 jobs, though their unemployment rate held near 13 per cent. Average hourly wages rose 2.3 per cent year-on-year, up from 2.0 per cent in August. Market reaction The loonie weakened 0.4 per cent to 1.4275 per US dollar — or 70.05 US cents — after touching its weakest intraday level since April 2025 at 1.4298. It is on track for a fifth straight weekly decline. Investors now see a 25 per cent chance that the Bank of Canada raises its benchmark rate at its October 28 meeting, down from 40 per cent before the report — this jobs release is the central bank's last labour-market reading before that decision. Canada's main stock index, the S&P/TSX Composite, rose 519.24 points, or 1.48 per cent, to 35,664.62 — its biggest gain in five weeks — as the weak data cut rate-hike expectations. BMO Capital Markets chief economist Douglas Porter said the second consecutive month of sizeable losses "washes away" the surprising early-summer strength, leaving employment up just 0.5 per cent from a year ago, and argued the Bank of Canada should maintain "watchful waiting." Sources: Reuters: Canadian Dollar Hits 18-Month Low as Jobs Data Clips Rate Hike Bets The Canadian Press: Canada Sheds 68,000 Jobs, Unemployment Rate Up to 6.5 Per Cent in September Reuters via Mint: TSX Posts Biggest Gain in Five Weeks as Rate Hike Bets Recede