Canada Loses 68,000 Jobs in September as Unemployment Rises

Statistics Canada reported that the Canadian economy lost 68,000 jobs in September, marking the second consecutive month of declines and the steepest single-month loss since February. The unemployment rate rose by 0.1 percentage points to 6.5%, returning to levels seen in January. These figures fell significantly short of economist expectations, which had predicted a gain of 9,200 jobs.

Job losses were concentrated in the public sector and split nearly evenly between full- and part-time positions. The educational services sector experienced the largest decline with 35,000 lost positions, followed by losses in healthcare and manufacturing. Demographically, youth aged 15 to 24 were the hardest hit with 48,000 fewer jobs, while women aged 25 to 54 lost 28,000 positions.

Provincial results varied, with Quebec losing 49,000 jobs and Ontario and British Columbia each shedding 20,000. In contrast, Alberta added 23,000 roles. While employment fell, average hourly wages increased by 2.3% annually. This labor market data serves as the final indicator before the Bank of Canada makes an interest rate decision on October 28.