Canada added fewer jobs than expected in October as the economy struggled to cope with a growing population in an overheated market. Although the unemployment rate remained steady, joblessness challenges persisted, particularly among young people and new immigrants, prompting hopes for growth from continued interest rate cuts.

Canada’s job market remained under strain in October, with only 14,500 new positions added, falling short of the anticipated 25,000. Statistics Canada’s data revealed that wages for permanent employees increased, but economic challenges persisted due to a rapidly rising population.

The unemployment rate stayed unchanged from September at 6.5%, a near three-year high. Over the past year, Canada’s labor force swelled by 2.4% thanks to record immigration, unsettling business investment and hiring, even as interest rates and inflation curbed demand.

Bank of Canada Governor Tiff Macklem expressed optimism that continued rate cuts could spur economic growth and employment. Despite modest layoffs, business hiring remains sluggish, affecting youth notably. However, the jobless rate among 15 to 24-year-olds dropped slightly, indicating a glimmer of revival for young workers.

(With inputs from agencies.)