Bank of Canada Governor Tiff Macklem described the Canadian labor market as "soft" despite the country adding 60,400 jobs in September.
Speaking to media from Washington, where he attended International Monetary Fund and World Bank meetings, Macklem explained that the September employment gain only partially reversed job losses exceeding 100,000 positions over the previous two months.
"The labor market, and the economy in general, it’s not down sharply, but it is certainly soft," Macklem said Friday, characterizing the employment data as "volatile."
He noted that Canada’s unemployment rate has increased to 7.1% from 6.6% at the beginning of 2025.
Macklem indicated that economic uncertainty has decreased since February and March but "remains elevated." He stated that growth is expected to resume but will likely be "soft, and probably a little below potential growth."
The central bank governor said the Bank of Canada is "putting more emphasis on the risks when it comes to the next rate announcement."
Macklem also observed specific employment trends across sectors, saying: "You’ve seen job losses in the heavily tariffed sectors. In the rest of the economy, you’re really seeing very soft hiring. I think that’s consistent with the fact that firms are feeling the uncertainty."
