Canada's jobless rate rises to 5.7 per cent, fuelling bets Bank of Canada rate hikes are done

Statistics Canada says the country's unemployment rate rose to 5.7 per cent last month, as the economy added a modest 18,000 jobs.

Canada's unemployment rate rose to 5.7 per cent last month as job opportunities became less plentiful in an economy weighed down by high interest rates.

Statistics Canada released its October labour force survey Friday, which showed the economy added a modest 18,000 jobs.

The gain was not enough to keep the unemployment rate from rising as the pace of job creation trails population growth.

Canada's unemployment rate was 5.5 per cent in September.

October marks the fourth increase in the jobless rate over the past six months and adds another data point in favour of the Bank of Canada's rate pause, according to economists.

"While the headline job gain was uneventful, make no mistake that the underlying picture for Canada's labour market is softening," wrote Bank of Montreal chief economist Douglas Porter in a note to clients.

Employment rose last month in construction and information and culture and recreation, but the increase was offset by declines in wholesale and retail trade as well as manufacturing.