Employment in Canada fell by 68,000 in September 2026, the second monthly drop in a row, and the unemployment rate rose to 6.5 percent, Statistics Canada reported on October 9. Young people and public sector workers took the biggest hit.
Key takeaways
- Employment: down 68,000 (0.3%). Employment rate 60.6%.
- Unemployment rate: 6.5%, up 0.1 points, and the same as in January.
- Youth (15 to 24) employment fell 48,000. Youth unemployment was 13.0%.
- Public sector employees fell 70,000, a fourth monthly decline, mostly in education.
- Average hourly wages rose 2.3% on the year, to $37.64.
Which industries and provinces lost jobs?
Educational services lost 35,000 jobs, health care and social assistance 23,000 (its first monthly fall since December 2022) and manufacturing 13,000. "Other services", which includes repair and personal services, added 17,000. Quebec lost 49,000 jobs and British Columbia 20,000, while Alberta added 23,000 and its unemployment rate fell to 6.4 percent.
Is it getting harder to find a job in Canada?
Statistics Canada's job-finding rate, the share of unemployed people who found work the next month, was 30.6 percent, below 32.8 percent a year earlier and the 2017 to 2019 average of 36.5 percent. The layoff rate, at 0.7 percent, was close to normal. So the problem is slower hiring rather than a wave of layoffs. Participation also fell to 64.8 percent, which the agency links mainly to an ageing population.
What does this mean if you plan to work in Canada?
Health care is still up 93,000 jobs on the year despite September's dip, and Alberta is adding work. If you're looking at immigration routes, see our guide to the Canada Express Entry 2026 occupation list and finding visa-sponsored jobs abroad.
The next Labour Force Survey, for October, comes out on November 6, 2026.
What is the background?
Canada's job market has been under pressure through 2026. A loss of 68,000 jobs in one month is large for a country of Canada's size, and it pushed unemployment up to 6.5 percent. Monthly survey numbers can swing, so economists look at the trend over several months, but the direction has been clear for a while.
Who is affected?
Young people looking for their first job, newcomers to Canada and workers in trade-exposed industries are under the most pressure. People planning to move to Canada should also take note: a weaker job market can affect how quickly newcomers find work, even though immigration programs still target in-demand occupations such as health care and the skilled trades.
What should job seekers do now?
- Focus on sectors with steady demand, such as health care and the skilled trades. Ottawa expects more than 1.4 million skilled trades openings between 2024 and 2033.
- If you are planning to immigrate, check the occupation lists used in Express Entry draws. Our guide to the Express Entry occupation list covers it.
- Build Canadian references and credentials early, through volunteering or short courses.
- Watch the October Labour Force Survey for signs of whether the drop continues.
Source: Statistics Canada, The Daily: Labour Force Survey, September 2026.
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