In September, Canada saw a decline of 68,000 jobs, as reported by Statistics Canada, marking the second consecutive month of job losses. The unemployment rate increased by 0.1 percentage points to 6.5%, the same rate as at the beginning of 2026, contrary to economists’ expectations of a gain of 9,200 jobs.
The recent trend in employment had been positive, with 181,000 jobs added between April and July, resulting in a net increase of 95,000 positions compared to a year ago. However, the unexpected job losses for two consecutive months have raised concerns about the state of the economy.
Various sectors experienced declines, with educational services, health care, and social assistance, as well as manufacturing, leading the job losses. On the other hand, the “other services” sector, which includes repair and maintenance services, saw an increase in employment, offsetting some of the losses.
The drop in education-related jobs, particularly in Quebec, could be a temporary setback or a reflection of broader weaknesses in the sector, possibly influenced by fewer international students in the country. Additionally, the decline in manufacturing jobs may be linked to the impact of new tariffs that came into effect in August.
Statistics Canada indicated that job losses affected both full-time and part-time positions, with a significant decrease in the public sector employment by 70,000 roles. In contrast, the private sector managed to add some jobs, providing a slight positive note amidst the overall decline.
The most substantial job losses were observed among youth aged 15 to 24, accounting for 48,000 lost jobs. Quebec led the provinces in job losses, shedding 49,000 positions, while British Columbia followed with 20,000 fewer jobs. However, Alberta bucked the trend by adding 23,000 jobs.
The latest job data will influence the upcoming interest rate decision of the Bank of Canada on Oct. 28. Despite the volatility in the data, experts believe that the current job market conditions may prompt the Bank of Canada to maintain interest rates unchanged in the near future, considering the potential impact of recent developments, including new U.S. tariffs.
Overall, the consecutive job losses in Canada highlight the fragility of the economy, with experts emphasizing the need for cautious monetary policy decisions to navigate the uncertain economic landscape.