Canada sheds 68,300 jobs, wiping out 2026 gains as trade war bites
Canada’s economy shed 68,300 jobs in September, sharply missing forecasts for a gain of 9,200, Statistics Canada said Friday.
The unemployment rate rose 0.1 percentage points to 6.5%, matching its level at the start of the year.
Employment has now fallen for a second straight month, following a drop of 42,000 in August, and the losses more than erase gains made earlier this year as the trade war with the US drags on.
The Canadian dollar dropped below US$0.70 for the first time since early 2025.
The employment rate slipped 0.2 percentage points to 60.6%, and labour force participation fell to 64.8%.
The number of public sector employees fell by 70,000, or 1.5%, the fourth consecutive monthly decline for the sector. Year over year, public sector employment is down 2.6%, with most of the drop in educational services.
The decline was concentrated among youth aged 15 to 24, who lost 48,000 jobs and women aged 25 to 54, who lost 28,000.
The services sector lost 52,300 jobs.
Quebec posted the largest provincial loss at 49,000 jobs, followed by British Columbia and Manitoba. Alberta added 23,000 jobs (+0.9%), while Newfoundland and Labrador and Prince Edward Island also saw gains.
Average hourly wages for employees rose 2.3% year over year in September, up $0.86 to $37.64, following growth of 2.0% in August.