Last updated: October 21, 2026
Quick answer: Canada’s economy lost 68,000 jobs in September 2026 (−0.3%), the second straight monthly decline, and the unemployment rate rose to 6.5%. The losses were driven less by layoffs — the layoff rate held at 0.7% — than by a hiring slowdown: only 30.6% of unemployed Canadians found work during the month, well below the 36.5% pre-pandemic average. Youth, education workers, and health care workers were hit hardest, while Alberta added 23,000 jobs. Source: Statistics Canada, Labour Force Survey, September 2026 (released October 9, 2026).
The headline numbers
| Measure | September 2026 | Change |
|---|---|---|
| Employment change | −68,000 | −0.3% in the month |
| Unemployment rate | 6.5% | +0.1 points (from 6.4%) |
| Employment rate | 60.6% | −0.2 points |
| Participation rate | 64.8% | Lowest since December 1997, outside 2020 |
| Job-finding rate | 30.6% | vs 36.5% average in 2017–2019 |
| Layoff rate | 0.7% | Little changed from a year earlier (0.6%) |
| Average hourly wages | $37.64 | +2.3% year over year |
September followed a loss of 42,000 jobs in August, making this the second consecutive monthly decline after a gain of 181,000 jobs from April to July. Employment is still up 95,000 compared with a year earlier. Full-time work fell by 35,000 and part-time work by 33,000. Economists polled by Reuters had expected a gain of about 9,200 jobs, so the result was a large miss.
A hiring slowdown, not a layoff wave
The most important detail in this report for job seekers is the gap between the two rates Statistics Canada tracks for people moving in and out of unemployment:
- The layoff rate was 0.7%, essentially unchanged from 0.6% a year earlier. Employers are not shedding workers at an unusual pace.
- The job-finding rate fell to 30.6% — of the people unemployed in August, fewer than one in three had found work by September. That is down from 32.8% a year earlier and well below the 36.5% average recorded from 2017 to 2019.
In plain terms: people are not losing jobs much faster than usual, but the people who are unemployed are taking longer to find new work. That distinction matters for anyone on Employment Insurance, because it points to longer claims rather than a sudden spike in new ones.
Who lost work in September
- Young Canadians (15–24): employment fell 48,000 (−1.8%). The youth unemployment rate was little changed at 13.0%.
- Core-aged women (25–54): employment fell 28,000, and their unemployment rate rose 0.3 points to 5.3%. Core-aged men’s unemployment rate fell 0.2 points to 5.8%.
- Workers 55 and older: the unemployment rate rose 0.2 points to 5.3%.
- Self-employment edged down 23,000 (−0.8%), after trending up from April to July.
Industries: education and health care led the losses
- Educational services: −35,000. Education is down 67,000 (−4.2%) from a year earlier, concentrated in Quebec (−27,000), Ontario (−19,000) and Alberta (−17,000) over the year.
- Health care and social assistance: −23,000. This was the sector’s first monthly decrease since December 2022 — though it is still up 93,000 (+3.2%) year over year, the largest contributor to overall employment growth in that period.
- Manufacturing: −13,000.
- Other services: +17,000, the main offsetting gain.
By sector of the economy, the public sector lost 70,000 jobs (−1.5%) — its fourth straight monthly decline, and down 119,000 from a year earlier, mostly in education. The private sector was little changed for a second month and remains up 163,000 year over year.
Results by province
| Province | Employment change, September 2026 | Unemployment rate |
|---|---|---|
| Quebec | −49,000 | 6.0% |
| British Columbia | −20,000 | 6.4% |
| Ontario | −20,000 (edged down) | 7.0% |
| Manitoba | −4,400 | 5.0% |
| Alberta | +23,000 | 6.4% |
| Newfoundland and Labrador | +1,800 | 9.1% |
| Prince Edward Island | +1,000 | 7.3% |
| Nova Scotia | Little changed | 6.3% |
| New Brunswick | Little changed | 7.4% |
Quebec’s decline continues a trend down since January, totalling −130,000 (−2.8%). Ontario’s small decrease comes with a longer view: Ontario employment is still up 86,000 (+1.1%) from a year earlier, and its unemployment rate is down 0.9 points over the same period. Alberta’s gain came with a 0.4-point drop in its unemployment rate, to 6.4%.
What this means if you are on EI, or about to apply
- If you lost a job in September, the newest separation rules may apply to you. For claims starting on or after October 11, 2026, Employment Insurance now looks at your most recent separation when deciding whether you qualify — an earlier voluntary quit or dismissal no longer automatically disqualifies the claim. We explain the change in detail here: EI Rule Change Oct 11, 2026: Only Your Last Job’s Exit Counts.
- Expect the job search to take longer, and plan your claim around that. With a job-finding rate of 30.6%, a typical search now runs longer than it did before the pandemic. Keep up your biweekly reports, keep records of your job search (Service Canada can ask for them), and apply for EI as soon as you stop working — waiting more than four weeks after your last paid day can cost you benefits.
- A stable layoff rate cuts both ways. Layoffs are not spiking, so claim volumes should stay manageable and processing should not face a sudden surge — but fewer layoffs also means fewer openings being created as workers move, which is part of why finding work is slower.
- Youth, education and health care workers should check their hours carefully. Insurable hours decide both eligibility and how long a claim lasts. Part-time and school-year contracts (common in education) often sit near the minimum-hours line, so confirm your Record of Employment shows all insurable hours before you apply.
What to watch next
- Bank of Canada rate decision — Wednesday, October 28, 2026, 9:45 a.m. ET. September’s jobs report was the last one before this decision. The September inflation report, released Monday, October 19, showed headline inflation of 3.1% with the Bank of Canada’s core measures soft — CPI-trim at 1.8% and CPI-median at 1.9%. Weak jobs growth argues for a hold or a cut; inflation still above 3% on the headline argues for caution. Economists are split, so treat any single prediction carefully.
- Business hiring intentions are soft. The Bank of Canada’s Business Outlook Survey for the third quarter of 2026, released October 19, found most firms plan to keep headcounts unchanged and hiring intentions remain soft — consistent with the falling job-finding rate in this report. Note that most survey responses were collected before Canada–U.S. trade talks broke down in October; responses received after the breakdown showed tariffs weighing on firms’ outlooks and pushing up their costs.
- Next jobs report — Friday, November 6, 2026. Statistics Canada releases the October Labour Force Survey that morning; it will show whether September was the bottom of this soft patch or the start of a longer slide.
Frequently asked questions
How many jobs did Canada lose in September 2026?
Canada lost 68,000 jobs in September 2026 (−0.3%), following a loss of 42,000 in August. Employment is still up 95,000 compared with September 2025.
What is Canada’s unemployment rate now?
The unemployment rate rose 0.1 points to 6.5% in September 2026. The youth (15–24) unemployment rate was 13.0%, and Ontario’s rate was 7.0%.
Why did unemployment rise if layoffs did not increase?
Because finding work got harder. The layoff rate was 0.7%, little changed from a year earlier, but the job-finding rate fell to 30.6% — below the 36.5% average from 2017 to 2019. Unemployed people are staying unemployed longer, which pushes the rate up even without more layoffs.
Which industries and provinces were hit hardest?
Educational services (−35,000) and health care and social assistance (−23,000) saw the largest industry losses, and the public sector fell 70,000. By province, Quebec lost the most jobs (−49,000), followed by British Columbia and Ontario (−20,000 each). Alberta gained 23,000.
I lost my job in September. Does the new EI separation rule help me?
Possibly. For claims starting on or after October 11, 2026, EI decides your eligibility based on your most recent separation, so an earlier quit or dismissal no longer automatically blocks a claim based on your latest job. Apply as soon as you stop working, and see our guide to the October 11 rule change for the details.
When is the next Canadian jobs report?
Statistics Canada releases the October 2026 Labour Force Survey on Friday, November 6, 2026. Before that, the Bank of Canada makes its next interest rate decision on Wednesday, October 28, 2026.
Sources
Statistics Canada — The Daily: Labour Force Survey, September 2026 (released October 9, 2026) · Statistics Canada, Consumer Price Index, September 2026 (released October 19, 2026) · Bank of Canada, Business Outlook Survey, Third Quarter of 2026 (released October 19, 2026).
