Ottawa: Canada’s economy is showing renewed strength as inflation continues to cool and employment figures climb, according to the latest data released by Statistics Canada on Monday.
The national unemployment rate fell to 5.3% in October 2025, marking the lowest level since mid-2022. At the same time, inflation dropped to 2.1%, nearing the Bank of Canada’s target range for the first time in nearly three years.
Economists say the figures suggest that the country is moving toward a “soft landing,” avoiding a major recession while maintaining stable growth. The service sector and construction industry led job gains, while manufacturing and energy sectors also reported modest improvements.
“We’re beginning to see the results of cautious monetary policy and targeted government spending,” said Dr. Elaine Porter, a senior economist at the Canadian Institute for Economic Research. “If trends continue, consumer confidence could rebound heading into 2026.”
The Bank of Canada has indicated that interest rates may remain steady for the remainder of the year, with potential cuts considered in early 2026 if inflation continues to ease. Analysts believe this could provide relief to borrowers and stimulate investment in small and medium-sized enterprises.
Meanwhile, the Canadian dollar strengthened slightly against the U.S. dollar following the economic report, reflecting growing market optimism.
Despite the positive momentum, experts caution that global trade uncertainty and fluctuating oil prices could still pose risks to Canada’s medium-term economic outlook.
