Canadian Unemployment Rates Showing Stronger-Than-Expected Recuperation

Unexpected Accelerated Employment Gains in September 

• More than 378,200 Canadian jobs were regained in September which is more than double the forecasted consensus in employment gains

• Moreover, most of the new employment positions have been in full-time employment

• This is the fifth consecutive month of steady employment increases, despite the re-implementation of some restrictions in August.

• Canada has now recouped nearly three quarters of lost jobs since the start of the pandemic, only six months since the initial lockdown.

Some Industries Hit Harder Than Others

While some industries face challenge after challenge to adapt to the new reality, some industries have not only recovered but are thriving. Despite the initial pause, real estate has bounced back to reach a record breaking summer market due to a combination of low interest rates and delayed spring interest.

Bottom Line: Covid-19 has been particularly cruel to low-wage employees, part-time employees, and certain sectors such as tourism and nightlife. This is most likely the reason why the real estate market has exceeded forecasted expectations  despite the depressed economy.

*The information and graphs above are taken from Sherry Cooper [Chief Economist of DLC]

The Bank of Canada Holds Overnight Rate at 0.25%

It's not a surprise the Bank of Canada held its target overnight rate steady again. This is great news for anyone with a variable rate mortgage, or anyone looking to renew or refinance their mortgage in the next 2 years,  as rates will likely remain low until 2023.