Canada Unemployment Rate September 2026: 6.5%, Jobs Fall

Quick answer: The Canada unemployment rate for September 2026 was 6.5%, up 0.1 percentage points from August, according to Statistics Canada's Labour Force Survey released October 9, 2026. Employment fell by 68,000, the second monthly drop in a row, with losses concentrated among youth, core-aged women, education and health care.

Key takeaways

Canada lost 68,000 jobs in September 2026 and the national unemployment rate edged up to 6.5% from 6.4%.
Young people aged 15 to 24 took the biggest hit, with employment down 48,000 and youth unemployment at 13.0%.
Public sector employment fell by 70,000, its fourth straight monthly decline, led by educational services.
Quebec and British Columbia lost jobs while Alberta added 23,000 and saw its unemployment rate drop to 6.4%.
Average hourly wages rose 2.3% year over year to $37.64 (CAD), slightly faster than the 2.0% pace in August.

Last updated: October 9, 2026

The Canada unemployment rate September 2026 reading came in at 6.5%, Statistics Canada (StatCan) reported on Friday, October 9, 2026. The national economy shed 68,000 jobs in September (reference week September 13 to 19), the second monthly decline in a row after a loss of 42,000 in August. The result was weaker than expected: according to The Canadian Press, the figures "fell short of economists’ call for a gain of 9,200 jobs." For job seekers, the headline matters less than the details: who is losing work, which sectors are cutting and where hiring is still holding up.

Canada unemployment rate September 2026: what are the numbers?

Canada's unemployment rate was 6.5% in September 2026, up from 6.4% in July and August. It is back where it started the year (6.5% in January) and below a recent peak of 6.9% in April.

The other headline measures from the Labour Force Survey (LFS) also weakened:

Employment: down 68,000 (-0.3%), split almost evenly between full-time (-35,000) and part-time (-33,000) jobs.
Employment rate: down 0.2 points to 60.6%, a second straight monthly drop.
Participation rate: down 0.2 points to 64.8%, the lowest reading since December 1997 outside the 2020 pandemic period.
Year over year: employment was still up 95,000 (+0.5%) compared with September 2025.

Note that the national LFS figures cover the 10 provinces; the territories are not included in the Canada-level totals.

Why did Canada lose 68,000 jobs in September?

The losses came mainly from three industries and two groups of workers. StatCan does not attribute the monthly decline to a single cause, but its breakdown shows where the cuts landed.

Industries that shed workers

Educational services: -35,000 (-2.2%) after seven months of little change. Over 12 months, the sector is down 67,000, with the largest annual drops in Quebec, Ontario and Alberta.
Health care and social assistance: -23,000 (-0.8%), its first monthly decline since December 2022. It is still up 93,000 over the year and remains the biggest driver of job growth since September 2025.
Manufacturing: -13,000 (-0.7%), reversing part of August's gain of 22,000.

Where hiring held up

"Other services," a category that includes repair and maintenance plus personal and household services, added 17,000 jobs (+2.1%) and is up 32,000 from a year ago. Private sector employee numbers were little changed for the month but 163,000 higher than 12 months earlier.

Is the public sector cutting jobs in Canada?

Yes. The number of public sector employees fell by 70,000 (-1.5%) in September, the fourth monthly decline in a row. Compared with a year earlier, public sector employment is down 119,000 (-2.6%), and StatCan says most of that drop is in educational services.

For people who have seen government or school board jobs as the safe option, this is a notable shift: public sector headcount is down 119,000 from a year ago.

Which provinces lost jobs in September 2026?

Quebec, British Columbia and Manitoba recorded the clearest losses, while Alberta led the gains.

Quebec: employment fell 49,000 (-1.1%), following a drop of 19,000 in August. Since January the province has lost 130,000 jobs (-2.8%), and its unemployment rate rose to 6.0%.
British Columbia: employment fell 20,000 (-0.7%), the first decline since March. The unemployment rate was little changed at 6.4%.
Ontario: employment edged down 20,000 (-0.2%), but is up 86,000 on the year. Ontario's unemployment rate was 7.0%, down 0.9 points from 12 months earlier.
Manitoba: employment fell 4,400 (-0.6%).
Alberta: employment rose 23,000 (+0.9%) and is up 76,000 (+2.9%) on the year. Its unemployment rate dropped to 6.4%, down 0.4 points in the month.
Newfoundland and Labrador and Prince Edward Island: small gains of 1,800 and 1,000 jobs respectively.

Who is most affected by rising unemployment?

Young workers and core-aged women felt the September losses most. Men aged 25 to 54 actually saw their unemployment rate improve.

Youth (15 to 24): employment fell 48,000 (-1.8%), the second monthly drop. Over August and September combined, youth lost 67,000 jobs, wiping out gains from April to July. The youth unemployment rate was 13.0%.
Women aged 25 to 54: employment fell 28,000 and the unemployment rate rose 0.3 points to 5.3%, as the number of women in this age group searching for work rose by 18,000.
Men aged 25 to 54: employment held steady and the unemployment rate fell 0.2 points to 5.8%.
People aged 55 and older: the unemployment rate rose 0.2 points to 5.3% as more people in this group searched for work.

How hard is it to find a job in Canada right now?

Harder than before the pandemic. Only 30.6% of people who were unemployed in August had found work by September, down from 32.8% a year earlier and well below the 2017 to 2019 average of 36.5%.

The layoff rate, by contrast, was 0.7%, close to last year's 0.6% and the pre-pandemic average. In plain terms, the data suggest Canadian employers are not laying off workers at an unusual pace but are hiring slowly, so people who lose a job or enter the market are finding work more slowly than before the pandemic.

Wages are still rising. Average hourly pay for employees climbed 2.3% from a year earlier, an increase of $0.86 to $37.64 (CAD), compared with 2.0% growth in August.

Why is Canada's participation rate falling?

Mostly because the population is getting older. People aged 65 and older made up 23.2% of the working-age population in September 2026, up from 20.5% in September 2019 and 14.8% around 2000.

StatCan's age-adjusted estimate shows that if the population had the same age mix as in September 2019, the participation rate would be almost unchanged from a year ago. In other words, StatCan attributes the lower participation rate, the lowest since December 1997 excluding 2020, largely to population aging.

What this means for you

A soft month does not mean every sector or region is struggling, but it should shape how you search. Practical steps based on the September data:

Expect a longer search. With the job-finding rate near 31%, plan your budget and timeline for a longer search than you might expect, especially if you are a student or recent graduate.
Look where jobs are growing. Alberta, health care over the year, and "other services" (repair and maintenance, personal and household services) are still adding workers.
Be cautious about public sector assumptions. Employment in educational services has fallen over the past year, especially in Quebec, Ontario and Alberta, so keep private sector options open.
Negotiate with data. Average hourly wages are $37.64, up 2.3% on the year; use current figures when discussing pay.
Check your rights if you are laid off. Notice, severance and Employment Insurance (EI) rules depend on your province and the federal EI program, so read the official guidance before signing anything.

When is the next Canada jobs report?

The next Labour Force Survey will be released on November 6, 2026. It will cover October 2026, using the reference week of October 11 to 17.

Related reading on Jobsiz: Minimum Wage Canada by Province 2026: Full Table, Severance Pay Ontario 2026: Rules, Formula and EI and Stelco Layoffs 2026: Rights, EI and Next Steps.

Frequently asked questions

What is the unemployment rate in Canada for September 2026?

It was 6.5%, according to Statistics Canada's Labour Force Survey released October 9, 2026. That is up 0.1 percentage points from 6.4% in August and matches the rate in January 2026.

How many jobs did Canada lose in September 2026?

Canada lost 68,000 jobs in September 2026, a 0.3% decline. It was the second monthly drop in a row after 42,000 jobs were lost in August, although employment was still 95,000 higher than a year earlier.

What is the unemployment rate in Ontario, Quebec, BC and Alberta?

In September 2026, Ontario's unemployment rate was 7.0%, down 0.9 points from a year earlier. Quebec was at 6.0%, while British Columbia and Alberta were both at 6.4%, with Alberta's rate down 0.4 points in the month.

What is the youth unemployment rate in Canada?

The unemployment rate for people aged 15 to 24 was 13.0% in September 2026, little changed from August. Youth employment fell by 48,000 in the month and by 67,000 over August and September combined.

Are wages still going up in Canada?

Yes. Average hourly wages for employees rose 2.3% year over year in September 2026, an increase of $0.86 to $37.64 (CAD). That was slightly faster than the 2.0% growth recorded in August.

Does the Canadian unemployment rate include the territories?

No. Statistics Canada notes that Labour Force Survey estimates at the Canada level do not include the territories. The national figures therefore reflect the 10 provinces.

When is the next Labour Force Survey release?

Statistics Canada will publish the October 2026 Labour Force Survey on November 6, 2026. It will reflect conditions during the week of October 11 to 17, 2026.

Sources

This article was compiled by Jobsiz from the sources listed above, with AI-assisted writing and automated fact-checking. Published October 9, 2026. We update stories when new verified information becomes available.

Canada Unemployment Rate September 2026 Rises to 6.5%