Statistics Canada released the labour market data on Friday. Canada's unemployment rate fell to 7.0% in October from 7.1% in September. Analysts had expected the unemployment rate to remain unchanged at 7.1%.

The increase was driven by higher labour participation. The labour participation rate increased slightly to 66.0% in October from 65.9% in September.

The number of employed people climbed by 44,400 jobs in October, beating expectations for a rise of 10,000 jobs, after a 12,100 increase in September.

The increase was driven by a rise in full-time work. Full-time employment was up by 14,587 in October, while part-time employment increased by 3,436 jobs.

The Bank of Canada monitors closely the labour participation rate.