Poor Jobs Market in September Strengthens Case for Bank of Canada Pause, Rosenberg Research Says

11:13 AM EDT, 10/13/2026 (MT Newswires) -- Canada's labor market weakened sharply in September, reinforcing expectations the Bank of Canada will keep interest rates unchanged, according to Rosenberg Research in a Tuesday note. Employment fell by 68,300 after declining by 41,700 in August, while total hours worked dropped 1.5% month over month, signaling a deeper slowdown in jobs market activity, Rosenberg said, referring to Friday's Labour Force Survey (LFS). Annual employment growth has also slowed to below 0.5%, compared with 1.0% a year ago and 1.6% two years earlier. Job losses spread across several cyclical sectors, indicating that the labor market's weakening wasn't merely the result of seasonal factors, Rosenberg wrote in the note. The LFS report reinforces expectations that Canada's central bank will leave interest rates unchanged at the Oct. 28 policy meeting, as growing labor market slack and subdued wage growth reduce the risk of second-round inflationary pressures, added Rosenberg.