Key Takeaways
- Canadian employment fell by 68,000 in September, marking a second consecutive monthly decline.
- Educational services, healthcare and social assistance, and manufacturing recorded the largest industry declines.
- Alberta gained 23,000 jobs, contrasting with substantial employment losses in Quebec and British Columbia.
Canada Loses 68,000 Jobs in September as Unemployment Rate Climbs to 6.5%
Canada’s labour market lost momentum in September, with employment falling for a second consecutive month. The latest Statistics Canada report shows that job losses spread across several major industries, while provincial results revealed sharply different employment trends.
Education and Healthcare Face Job Declines
Employment dropped by 68,000, or 0.3%, leaving approximately 21.105 million people employed. The unemployment rate increased from 6.4% in August to 6.5% in September.
Educational services recorded the largest industry decline, shedding 35,000 jobs. Healthcare and social assistance lost another 23,000, while manufacturing employment decreased by 13,000.
The public sector also continued its downward trend. Employment fell by 70,000 in September, marking the fourth consecutive monthly decline. Compared with a year earlier, public-sector employment was down by 119,000.
Young workers faced additional pressure. Employment among people aged 15 to 24 declined by 48,000, and their unemployment rate stood at 13.0%.
Alberta Gains as Quebec Loses Jobs
The national picture was not uniformly negative. Alberta added 23,000 jobs, an increase of 0.9%, while Newfoundland and Labrador gained 1,800 and Prince Edward Island added 1,000.
Quebec experienced the steepest provincial decline, losing 49,000 jobs. British Columbia followed with a reduction of 20,000, while Manitoba recorded a smaller decrease.
Wages offered a more positive signal. Average hourly wages among employees reached $37.64, up 2.3% compared with September 2025. However, wage growth alone does not show whether workers are keeping pace with their living costs.
TwikUp’s Perspective
The figures point to a labour market that requires closer attention rather than a single sweeping conclusion. Employment conditions differ by province, age group and industry, meaning national averages can conceal the challenges facing particular communities.
The participation rate also deserves attention. At 64.8%, it reached its lowest level since December 1997 outside the pandemic period. Statistics Canada said population aging largely explains the year-over-year decline. The next reports will help establish whether September’s weakness continues or proves temporary.