Building permits rose a little in October, but a weak help-wanted index indicates the economy is still struggling with mixed messages.

Building permits rose by 1% in October to $3.3 billion, this marks the first monthly rise since July and the highest year-to-date issuance since 1989.

Permits for single-family dwellings hit their second highest level in a decade, while multi-family permits also increased. BMO Nesbitt Burns observes that the residential sector has been supported from low interest rates and tight rental markets across the country.

Non-residential permits were up slightly in the month. Rising office vacancy rates and weak business confidence will offset the impact of low interest rates in the non-residential sector, notes BMO.

In a separate release, the help-wanted index fell 7 points in November to its lowest level in four years. The index is now down nearly 25% from a year ago, the largest plunge since October 1991. The figures do not bode well for job seekers, and point towards a large decline in tomorrow’s November employment report, says BMO.

BMO says, “Canadian interest-sensitive sectors have benefited by the aggressive Bank of Canada easing this year, and the gains are likely to continue over the next few months. The help-wanted index presages an expected decline in the November employment report and continued labour market weakness.”