The Labour Force Survey continued its wild ride of late, coming in on the upside of a second straight month after losses over the summer. Employment rose faster than population growth, helping send the unemployment rate down from 7.1% to 6.9%, where it stood in July. A year earlier, the jobless rate was 6.6%, highlighting how the labour market has softened over this period, but not dramatically so. 

Line chart titled “The unemployment rate ticked down in October” shows the Canadian unemployment rate between January 2022 and October 2025. The unemployment rate ticked down 0.2 percentage points in October to 6.9%, returning to its July 2025 level.
Line chart titled “The unemployment rate ticked down in October” shows the Canadian unemployment rate between January 2022 and October 2025. The unemployment rate ticked down 0.2 percentage points in October to 6.9%, returning to its July 2025 level.

Not only have the headline job numbers been volatile, but the split between full-time and part-time jobs has also been unstable. Part-time employment accounted for the entire net increase in October, rubbing some of the shine off the solid headline. But this increase followed two steep declines. Overall, the part-time share of total employment has fluctuated between 17.9 and 18.4% in 2025, with little clear trend, with October coming in at 18.2%. Zooming out, the share of workers typically working less than 30 hours per week is down from its 19% pre-pandemic norms, likely reflecting the types of industries that’ve added jobs faster over this period (such as professional services and public administration). 

Line chart titled “Part-time job share volatile recently, after declining following the pandemic” shows the share of total Canadian workers employed in part-time jobs between January 2017 and October 2025. The part-time share has fluctuated in 2025, ticking up in October but still remaining well below its 2019 levels. 
Line chart titled “Part-time job share volatile recently, after declining following the pandemic” shows the share of total Canadian workers employed in part-time jobs between January 2017 and October 2025. The part-time share has fluctuated in 2025, ticking up in October but still remaining well below its 2019 levels. 

As year-end approaches, it’ll be tough to expect more from the labour market beyond muddling through, without more material improvement in the broader economy. Employment in goods-producing industries like manufacturing and construction has slipped in 2025 (despite manufacturing edging up in October),  and the uncertain trade situation remains a cloud over the outlook. But for now, low layoff rates are keeping the situation stable, as we wait to see if the economic situation shifts.