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Canada Lost 68,000 Jobs in September and Unemployment Rose to 6.5%. What It Means for Rates and Your Money
- Canada lost 68,000 jobs in September 2026 (-0.3%). Economists expected a small gain.
- The unemployment rate rose to 6.5% from 6.4%. It's the second monthly drop in a row, after 42,000 jobs were lost in August.
- Quebec lost 49,000 jobs. Ontario and British Columbia each lost 20,000. Alberta gained 23,000.
- Youth aged 15 to 24 lost 48,000 jobs. Youth unemployment is 13.0%.
- Average hourly wages rose 2.3% from a year ago, to $37.64. The Bank of Canada's next rate decision is October 28.
The headline
Statistics Canada released its September jobs report on Friday morning. It was much weaker than expected.
| September 2026 | Change from August | |
|---|---|---|
| Employment | 21,105,000 | -68,000 (-0.3%) |
| Full-time jobs | -35,000 | |
| Part-time jobs | -33,000 | |
| Unemployment rate | 6.5% | +0.1 point |
| Share of adults working | 60.6% | -0.2 point |
| Average hourly wage | $37.64 | +2.3% from a year ago |
Economists had predicted a gain of somewhere between 7,000 and 9,000 jobs. Canada also lost 42,000 jobs in August. That's about 110,000 jobs gone in two months.
Where the jobs were lost
By province. Quebec took the biggest hit by far.
- Quebec: -49,000
- Ontario: -20,000
- British Columbia: -20,000
- Alberta: +23,000
Alberta's gain fits the pattern of the year. Oil above $100 a barrel is good for energy-producing regions and hard on everyone else.
By industry.
- Education: -35,000
- Health care and social assistance: -23,000, the first drop since December 2022
- Manufacturing: -13,000
By age. Workers aged 15 to 24 lost 48,000 jobs. Youth unemployment is now 13.0%. Among adults 25 to 54, women lost 28,000 jobs while men's employment held steady.
One number that softens it
The unemployment rate only rose a little, from 6.4% to 6.5%. That's partly because fewer people were looking for work. The participation rate fell to 64.8%. People who stop searching aren't counted as unemployed.
So the small rise in the unemployment rate makes the month look better than it was.
Why this is happening
Two forces are squeezing Canada at once.
- Tariffs. New US tariffs of 50% on some Canadian goods took effect on August 22. Canada answered with its own on September 8. Manufacturing and the businesses around it are feeling it.
- Expensive energy. High fuel prices raise costs for employers and leave households with less to spend.
What it means for interest rates
The Bank of Canada meets on October 28. Its rate is 2.25%.
Only weeks ago, traders were debating whether the Bank would have to raise rates to fight inflation. Two straight months of job losses make that harder to justify. But a cut isn't likely either while oil keeps prices rising.
The next clue is September inflation, due October 19.
What it means for you
If you have a variable-rate mortgage: this report lowers the odds of a rate increase this month. That's a small relief.
If your job feels uncertain: build your cash cushion first, before investing more. Three to six months of expenses is the usual target. See how much emergency fund you need and where to keep it.
If you're young and job-hunting: a 13% youth unemployment rate means you're not imagining it. It's a hard market.
If you're a long-term investor: one jobs report shouldn't change your plan. A weaker economy also tends to mean a weaker Canadian dollar, which we cover in why the loonie hit an 18-month low.
Frequently asked questions
How many jobs did Canada lose in September 2026?
Employment fell by 68,000, or 0.3%, according to Statistics Canada's Labour Force Survey released on October 9, 2026. Full-time work fell by 35,000 and part-time work fell by 33,000.
What is Canada's unemployment rate?
The unemployment rate was 6.5% in September 2026, up from 6.4% in August. By province, it was 7.0% in Ontario, 6.0% in Quebec, 6.4% in British Columbia, 6.4% in Alberta and 9.1% in Newfoundland and Labrador.
Which provinces lost the most jobs?
Quebec lost 49,000 jobs, a 1.1% drop. Ontario and British Columbia each lost about 20,000. Alberta moved the other way and gained 23,000.
Which industries lost jobs?
Educational services lost 35,000 jobs and health care and social assistance lost 23,000, its first monthly decline since December 2022. Manufacturing lost 13,000. The category called other services gained 17,000.
Will the Bank of Canada cut rates after this jobs report?
The report makes a rate increase on October 28 less likely, but a cut is not expected either. The Bank's policy rate is 2.25%. Oil above $100 a barrel is pushing inflation up at the same time as job losses are slowing the economy, which leaves the Bank stuck in the middle.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Oct 9, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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