Canada jobs surge in September, driven by the self-employed

More people aged 55 and older found work during the month, with openings filled in public administration, educational services, transportation and warehousing.

According to Statistics Canada's monthly Labour Force Survey released October 7, unemployment climbed to 9.4 per cent last month after three months of slight declines.

- CAD Unemployment Rate (SEP): 7.0% as expected, from 7.0%. An economist survey carried out by Bloomberg that had a median prediction of 7,500 new positions also revealed that the increase was triple the highest estimate. 13,000 people held part-time jobs in September, the highest number since June 2015.

The September Labour Force Survey Breakdown revealed that full-time employment rose by only +23.0K while part-time positions increased by +44.1K; an indication that the quality of jobs being created may not necessarily be improving. Quebec's unemployment rate fell to 6.9 percent from 7.1 percent to the lowest since the start of 2008, as the French-speaking province added 38,300 jobs.

The goods-producing segment of the economy fared well, with construction adding 6,400 jobs and manufacturing, 6,300.

"It was not a ideal report in September, but still, it's a big number and we're encouraged by that", National Bank senior economist Krishen Rangasamy said in an interview.

In the 12 months to September, employment increased by 0.8% with a 0.3% increase in full-time jobs, while part-time jobs increased by 2.6%. Still, the headline gain masks underlying data which point to softness in Canada's labor market.

Still, the survey found close to half of the roughly 100 companies polled said they meant to add jobs over the coming year.

Canadian employment grew by the most in more than four years in September, signaling lower interest rates may not be needed to sustain a sluggish recovery from the commodities bust.