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Macro EconomyMediumUpdated×2•Originally published 9 October 2026•Updated 9 October 2026•
1 min read

Canada Employment Drops Sharply in September Amid Trade Tensions

Key Facts

1Canada recorded a loss of 68.3K jobs in September, significantly missing expectations of a 9.2K gain.
2The unemployment rate held steady at 6.5%, supported by a drop in the participation rate to 64.8%.
3Average hourly wages for permanent employees rose 2.3% YoY, up from the previous 2.0%.

Canada recorded a loss of 68.3K jobs in September, significantly missing expectations of a 9.2K gain. Investinglive reported that the unemployment rate rose to 6.5% from 6.4% in August, while average hourly wages for permanent employees increased by 2.3% on an annual basis.

The data showed that job losses were concentrated in the public sector, even as private-sector employment grew by 24K in September 2026. This labor market weakness coincided with a drop in the participation rate to 64.8%, creating a complex environment for the Bank of Canada as it balances economic slowing with persistent wage-driven inflationary pressures.

Latest Updates · 1

  1. Notable·

    Update: Detailed data for September 2026 showed that full-time employment decreased by 35.4K positions, while part-time roles fell by 32.9K. This contraction resulted in a 0.2 percentage point decline in Canada's overall employment rate, which settled at 60.6%.