Canada experienced a loss of 68,000 jobs in September, as reported by Statistics Canada, marking the second consecutive month of job declines. The unemployment rate increased by 0.1 percentage points to 6.5%, the same level as at the beginning of 2026.
The job losses contradicted the predictions of economists who expected a gain of 9,200 positions for September. This followed a previous unexpected loss of 42,000 jobs in August, disrupting a positive trend in the labor market.
Statistics Canada data had shown a positive trend in employment before the recent declines, with 181,000 jobs added between April and July. Despite the recent losses, there were still 95,000 more jobs compared to the previous year.
BMO’s chief economist, Doug Porter, highlighted the volatility of job figures in recent years and expressed concern over seeing two consecutive months of significant job losses. He described the results as disappointing and suggested a struggling economy in the early fall.
Job losses were particularly notable in sectors such as educational services, health care, and manufacturing, whereas “other services” like repair and maintenance saw some gains. The decline in education jobs, particularly in Quebec, raised questions about the impact of reduced international student enrollment.
CIBC’s senior economist, Andrew Grantham, attributed the poor report to data volatility but also indicated that manufacturing losses could be linked to the impact of new tariffs implemented in August.
The job losses affected both full-time and part-time positions, with the public sector experiencing a significant decline of 70,000 roles in the month. However, the private sector managed to add some jobs, offering a slight positive aspect within the report.
The decline in job numbers was most pronounced among youth aged 15 to 24, with 48,000 job losses reported. Quebec led the provinces in job losses with 49,000 jobs lost, while Alberta saw an increase of 23,000 positions.
The latest job data will influence the Bank of Canada’s upcoming interest rate decision on Oct. 28. CIBC’s Grantham suggested that the job losses, while influenced by data volatility, could prompt the Bank of Canada to maintain the current interest rates in the near future.