Canada unexpectedly sheds 68,000 jobs and unemployment rises to 6.5 percent

Statistics Canada said Friday that employment fell by 68,000 in September, the second straight monthly drop after a loss of 42,000 in August. Economists polled by Reuters had expected a gain of about 9,000. The unemployment rate rose a tenth of a point to 6.5 percent.

Losses were split between full-time and part-time work, and youth employment fell 48,000. Public-sector employment dropped for a fourth straight month. The participation rate fell to 64.8 percent, which StatCan says is the lowest since December 1997 outside of 2020, largely because of an aging population.

Wages still rose 2.3 percent from a year earlier. This is the last jobs report before the Bank of Canada's October 28 decision, with its policy rate at 2.25 percent.