Canada's Job Market Struggles Amid Rising Labor Force and Stagnant Growth

Canada added 14,500 jobs in October, below expectations amid a growing labor force. The unemployment rate stayed at 6.5%. Despite rate cuts aimed at stimulating growth, business investments and hiring remained muted. Full-time employment rose, but part-time declined, signaling mixed economic signals.

In October, Canada's job market provided a meager increase of 14,500 jobs, falling short of forecasts, as per Friday's report. This development comes amidst a burgeoning labor force that the economy is struggling to accommodate adequately.

The unemployment rate remains steady at 6.5%, a figure close to a 34-month high, according to Statistics Canada. Analysts had anticipated an addition of 25,000 jobs and a slight rise in the unemployment rate to 6.6%. However, high-interest rates and inflation have continued to suppress the demand, resulting in stagnant business investments and hiring.

The labor force is growing, driven largely by immigration, which has reached 7% of the total population. This surge has been met with limited job opportunities, reducing the employment rate. Bank of Canada has responded with substantial interest rate cuts, which are yet to significantly enhance economic growth.

(With inputs from agencies.)