Canada’s labour market weakened for a second consecutive month in September, with employment falling by 68,000 jobs, according to the latest Labour Force Survey released by Statistics Canada on October 9. The decline represented a 0.3 per cent drop in employment and pushed the national unemployment rate up to 6.5 per cent from 6.4 per cent in August. The latest figures followed a loss of approximately 42,000 jobs in August, reversing some of the employment gains recorded earlier in the year. The September decline affected both full-time and part-time employment. Full-time positions fell by 35,000, while part-time employment declined by 33,000. The employment rate, which measures the proportion of people aged 15 and older who are employed, dropped by 0.2 percentage points to 60.6 per cent. Young Canadians experienced some of the largest losses. Employment among people aged 15 to 24 fell by 48,000 in September, marking the second consecutive monthly decline for this age group. The youth unemployment rate remained at 13 per cent. Over August and September combined, youth employment declined by 67,000. Women aged 25 to 54 were also affected, with employment falling by 28,000. Their unemployment rate increased by 0.3 percentage points to 5.3 per cent as more women in this age group entered the labour force looking for work. The largest industry declines occurred in educational services, health care and social assistance, and manufacturing. Educational services lost 35,000 jobs, while health care and social assistance employment fell by 23,000. Manufacturing recorded a decline of 13,000 positions. In contrast, the broader category of other services, which includes repair, maintenance and personal or household services, added 17,000 jobs. Public-sector employment fell by 70,000 in September, marking its fourth consecutive monthly decline. Compared with a year earlier, public-sector employment was down by 119,000, with much of the longer-term decrease concentrated in educational services. Private-sector employment was little changed during the month but remained higher than a year earlier. Employment trends varied significantly across provinces. Quebec recorded the largest decline, losing 49,000 jobs, while British Columbia lost 20,000. Ontario also saw employment edge down by 20,000. Alberta moved in the opposite direction, adding 23,000 jobs, while Newfoundland and Labrador and Prince Edward Island also recorded increases.
In Alberta, the unemployment rate declined by 0.4 percentage points to 6.4 per cent. Employment in the province was up by 76,000, or 2.9 per cent, compared with September 2025. The provincial gains contrasted with the national decline and provided a more positive picture of the labour market in Alberta. Despite the monthly employment losses, the number of employed Canadians remained 95,000 higher than a year earlier. Average hourly wages rose by 2.3 per cent year over year to $37.64 in September, according to Statistics Canada. The report also showed that Canada’s labour force participation rate fell to 64.8 per cent, its lowest level since December 1997 outside the COVID-19 pandemic period. The participation rate measures the proportion of the population aged 15 and older who are either employed or actively looking for work. Statistics Canada said population aging accounts for much of the longer-term downward pressure on participation. The latest figures will be closely watched by economists and policymakers as they assess the strength of the Canadian economy. The Bank of Canada’s next interest-rate decision is scheduled for October 28, making the September employment report an important indicator of labour-market conditions ahead of that announcement.