Canada’s job market took another hit in September, with 68,000 fewer people employed and the unemployment rate climbing to 6.5%, according to Statistics Canada’s latest Labour Force Survey, released Friday.
Credit: Statistics Canada/Source(s): Labour Force Survey (3701), tables 14-10-0287-02 and 14-10-0292-02.
It was the second consecutive month of job losses, following a decline of 42,000 positions in August. September’s losses were almost evenly divided between full-time employment, which fell by 35,000, and part-time work, down 33,000.
The employment rate, which measures the share of Canadians aged 15 and older who are working, fell to 60.6%.
Young Canadians Hit Hardest
Younger workers accounted for much of September’s decline.
Employment among Canadians aged 15 to 24 dropped by 48,000, bringing the total decline over August and September to 67,000. The youth unemployment rate remained at 13%.
Women aged 25 to 54 also faced a difficult month, with employment falling by 28,000. Their unemployment rate increased to 5.3%.
Finding a job has become more difficult, too. Statistics Canada’s job-finding rate fell to 30.6%, compared with 32.8% a year earlier and 36.5% before the pandemic, during 2017 to 2019.
Education and Health Care Shed Jobs
Educational services recorded the largest industry decline, losing 35,000 positions in September.
Health care and social assistance employment fell by 23,000, its first monthly decrease since December 2022. Manufacturing lost another 13,000 jobs.
Meanwhile, employment in “other services,” including repair, maintenance and personal services, increased by 17,000.
Alberta Adds Jobs While Quebec Sees Sharp Decline
September’s employment numbers varied considerably across Canada. While Quebec and British Columbia lost thousands of jobs, Alberta recorded a notable increase. Smaller gains were also reported in Newfoundland and Labrador and Prince Edward Island.
Quebec saw the largest decline, losing 49,000 jobs, bringing its total losses since January to 130,000. Its unemployment rate rose to 6.0%.
Ontario lost 20,000 jobs, with unemployment at 7.0%, while British Columbia shed another 20,000 positions, leaving its unemployment rate at 6.4%.
Alberta moved in the opposite direction, adding 23,000 jobs. Its unemployment rate fell to 6.4%.
Manitoba lost 4,400 jobs, with unemployment at 5.0%, the lowest provincial rate. Saskatchewan’s employment was little changed, with unemployment at 5.4%.
In Atlantic Canada, Newfoundland and Labrador added 1,800 jobs, although unemployment reached 9.1%. Prince Edward Island gained 1,000 positions, bringing unemployment down to 7.3%.
Employment remained relatively stable in Nova Scotia and New Brunswick, where unemployment rates stood at 6.3% and 7.4%, respectively.
Wages Rise, but Fewer Canadians Participate in Labour Market
Average hourly wages increased 2.3% from a year earlier, reaching $37.64, an increase of 86 cents.
Another notable figure was Canada’s labour force participation rate, which dropped to 64.8%.
Excluding 2020, that was its lowest level since December 1997. Statistics Canada attributed much of the longer-term decline to population aging.
The next Labour Force Survey, covering October, is scheduled for November 6, 2026.
Statistics Canada, Labour Force Survey, September 2026.