Canada saw a decline of 68,000 jobs in September, as reported by Statistics Canada, marking the second consecutive month of job losses. The unemployment rate rose by 0.1 percentage points to 6.5%, the same level as at the beginning of 2026.
Economists had anticipated a gain of 9,200 jobs in September, but the actual figures were contrary to their predictions. This follows a previous unexpected loss of 42,000 jobs in August, halting the positive trend in the labor market.
Despite the recent setbacks, data from Statistics Canada had shown a positive trend in employment, with 181,000 jobs added between April and July. Compared to a year ago, there are still 95,000 more jobs in the country.
BMO’s chief economist, Doug Porter, highlighted the volatility of job figures, noting the rare occurrence of consecutive large job losses. He described the results as disappointing, indicating potential economic struggles in the early fall.
Job losses were prominent in sectors such as educational services, health care, and manufacturing, while “other services,” including repair and maintenance, saw gains. The decline in education jobs, particularly in Quebec, could be a temporary issue or a reflection of reduced international student enrollment.
CIBC’s senior economist, Andrew Grantham, suggested that while some data fluctuations may have influenced the poor report, the manufacturing losses could be linked to the impact of new tariffs imposed 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 jobs, providing a slight positive aspect amid the overall decline.
The decline in employment was most pronounced among youth aged 15 to 24, with 48,000 job losses, while core-aged women (25-54 years old) also saw a decrease of 28,000 positions. Quebec led in job losses by province, followed by British Columbia, while Alberta added 23,000 jobs.
The latest job data will influence the Bank of Canada’s upcoming interest rate decision. CIBC’s Andrew Grantham indicated that the drop in job numbers may lead the Bank of Canada to maintain its current interest rates, considering the overall economic volatility.
In conclusion, while the recent employment data reflects some data fluctuations, it may also indicate the impact of external factors such as new tariffs. The Bank of Canada is likely to maintain a cautious approach in light of the current job market conditions.