Canada's unemployment hits 6.7% as rate-hike bets fade
Canada's unemployment rate rose to 6.7% in October, beating forecasts of 6.5% and extending two straight months of job losses, per Statistics Canada. The soft labor market is already denting expectations for a December rate hike ahead of the Bank of Canada's decision on December 9, 2026.
Canada's jobless rate climbed to 6.7% in October, Statistics Canada's latest Labour Force Survey shows. Economists had penciled in 6.5%, so the print landed a notch hotter than expected. It also marks a 0.2 percentage point increase, up from 6.5% a month earlier.
The rise caps two straight months of job losses, painting a labor market that's losing its footing. That combination — more people out of work and fewer paychecks being handed out — is exactly the kind of cooling that reshapes central bank math.
And the math is already moving. Traders have trimmed the odds of a meaningful rate hike in December, according to Crypto Briefing, with expectations tilting away from tightening as the data rolls in. The Bank of Canada's next rate announcement is set for December 9, 2026.
All eyes now shift to the Bank's messaging. Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers will be watched closely for any hint of a policy pivot, and every syllable could jolt market expectations in either direction.
The backdrop matters too. Upcoming inflation and GDP readings will carry outsized weight as the Bank weighs whether the labor market's softness is a blip or a trend. Until then, the October survey stands as a fresh warning light on the Canadian economy.
TopicsStatistics Canada · Bank of Canada · Tiff Macklem · Carolyn Rogers · Canada
Source: cryptobriefing.com
Written by Paparazzi with AI. Not financial advice.