---
title: "Canadian Workers Lost 68,000 Jobs in September | Metaintro"
canonical: "https://www.metaintro.com/blog/canada-68000-jobs-lost-september-2026-unemployment-6-5"
language: "en"
author: "drashtigarach"
published: "2026-10-12T15:49:54.000Z"
modified: "2026-10-13T06:15:22.304Z"
---

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# Canadian Workers Lost 68,000 Jobs in September, With Education and Public Sector Staff Hit Hardest

Canada lost 68,000 jobs in September and unemployment rose to 6.5% from 6.4%. Public sector, education and Quebec jobs fell most while Alberta added work.

[![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach)

[October 12, 2026](/blog/archive/2026/10)13 min read

![A cardboard box of classroom supplies on a wooden bench in a bright school hallway with autumn maple trees outside](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/final-10522.jpg)

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Canada's [employment declined by 68,000 in September](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), and the unemployment rate rose 0.1 percentage points to 6.5%, in the latest Statistics Canada survey, released on October 9. The drop came on top of [a loss of 42,000 jobs in August](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/), and economists had expected [a gain of 9,200 positions in September](https://www.cbc.ca/news/business/canada-jobs-numbers-september-2026-9.7375345). The losses [fell hardest on public sector staff, schools, young workers and Quebec](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm). For [Metaintro](https://www.metaintro.com) readers in Canada, this guide covers which jobs shrank, where hiring is still growing, what the slower job-finding rate means, and how Employment Insurance works if you lost work this fall.

## What Did the September Labour Force Survey Show?

The headline loss of [68,000 jobs](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999) was split almost evenly between full-time work (minus 35,000) and part-time work (minus 33,000). The employment rate [fell 0.2 percentage points to 60.6%](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), its second monthly decrease in a row.

Before the two declines, [employment had trended up from April to July (+181,000)](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), and the September drop together with August [wipes out more than half of the 181,000 jobs added between April and July](https://thehub.ca/2026/10/09/canada-shed-68000-jobs-in-september-statistics-canada-reports/). Over a full year the picture is still positive, with [employment up by 95,000 positions](https://www.cbc.ca/news/business/canada-jobs-numbers-september-2026-9.7375345) compared with a year ago.

The survey reflects [the reference week of September 13 to 19, 2026](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), and its sample is about 65,000 households. [Young Canadians](https://www.metaintro.com/blog/young-canadians-hiring-system) aged 15 to 24 are [a group that typically sees seasonal headwinds around this time of year after the school year starts](https://www.rbc.com/en/economics/?p=15740), according to RBC Economics.

## Which Workers Lost the Most Jobs in September?

The [biggest decline was in the public sector](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/). The [number of public sector employees declined by 70,000](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999) (minus 1.5%), the fourth monthly decline in a row, and the sector is [down 119,000 jobs year-over-year](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/). [About half of the public sector loss was in education (-35.3k)](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html).

By industry, the moves were these:

- **Educational services** lost [35,000 jobs (-2.2%) after seven months of little change](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999), and the industry is down 67,000 from a year earlier.
- **Health care and social assistance** [lost 23,000](https://thehub.ca/2026/10/09/canada-shed-68000-jobs-in-september-statistics-canada-reports/), its [first monthly decrease since December, 2022](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/), yet it is still up [93,000 (+3.2%) in the 12 months to September](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm).
- **Manufacturing** [gave back 13,000 jobs after an August gain](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999).
- **Other services**, which covers repair and personal services, [added 17,000](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999).

Private sector employment held up better, as it [was flat for a second month but remains up 163,000 over 12 months](https://thehub.ca/2026/10/09/canada-shed-68000-jobs-in-september-statistics-canada-reports/), and self-employment edged down by 23,000.

By age, [youth aged 15 to 24 accounted for 48,000 job losses](https://www.cbc.ca/news/business/canada-jobs-numbers-september-2026-9.7375345), yet their unemployment rate was little changed at 13 per cent because the pool of young workers also shrank. That is [70%, or 48,000, of the decline](https://www.rbc.com/en/economics/?p=15740). Women aged 25 to 54 [held 28,000 fewer positions](https://www.cbc.ca/news/business/canada-jobs-numbers-september-2026-9.7375345), and their jobless rate [rose to 5.3 per cent from 5 per cent](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/), while the rate for men the same age fell to 5.8 per cent.

> "There's no question, this is a disappointing result," BMO chief economist Doug Porter said, according to [the CBC News jobs report](https://www.cbc.ca/news/business/canada-jobs-numbers-september-2026-9.7375345).

## What Happened in Quebec, and Where Is Alberta Still Adding Jobs?

Quebec carried the biggest provincial loss, as [employment in Quebec fell by 49,000 (-1.1%)](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm) in September, and its unemployment rate rose by 0.4 percentage points to 6.0%, [still below the Canadian average of 6.5%](https://www.desjardins.com/en/savings-investment/economic-studies/quebec-employment-october-9-2026.html). Inside Quebec, the losses were [concentrated in the Montreal CMA (-35,500), where the unemployment rate rose from 6.5% to 7.4%](https://www.desjardins.com/en/savings-investment/economic-studies/quebec-employment-october-9-2026.html).

In Quebec, the [private sector posted a gain of 24,100 jobs](https://www.desjardins.com/en/savings-investment/economic-studies/quebec-employment-october-9-2026.html), while the public sector fell by 40,400. Educational services in Quebec lost [37,500 jobs](https://www.rbc.com/en/economics/?p=15740), and [accommodation and food services (+13,200) as well as professional, scientific and technical services (+7,300) posted gains](https://www.desjardins.com/en/savings-investment/economic-studies/quebec-employment-october-9-2026.html). Since January, Quebec has lost [130,000 positions (-2.8%)](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999).

Elsewhere, British Columbia [lost 20,000 jobs, its first monthly decline since March](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999), and Ontario edged down 20,000 with unemployment at 7.0%. Manitoba lost [4,400 jobs](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/).

Alberta, by contrast, [added 23,000 jobs (+0.9%) and trimmed its unemployment rate 0.4 points to 6.4%](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999), and it is [up 76,000 year-over-year](https://www.rbc.com/en/economics/?p=15740). Alberta has become [Canada's job creation engine this year](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html), according to Desjardins. Newfoundland and Labrador and Prince Edward Island [also saw job gains](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/).

## Why Did the Unemployment Rate Rise Only a Little?

The rise was [partly due to a 0.2 ppt decline in the participation rate to 64.8%](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html). Royce Mendes, head of macro strategy at Desjardins, said the slight rise in unemployment "[could have been worse, were it not for a drop in the participant rate](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/)".

Over the year, the participation rate fell 0.4 points, [largely the result of population aging](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), since people aged 65 and older [now make up 23.2% of the working-age population, up from 20.5% in September 2019](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999). Holding the 2019 age mix constant, the participation rate in September [would be little changed](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm) year over year. Rising retirement and weaker immigration [remain main accelerants that are reducing available labour supply relative to the total population](https://www.rbc.com/en/economics/?p=15740), according to RBC Economics.

[Total hours worked dropped sharply at 1.5% month over month](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html) in September, though they were up a slim 0.1% year over year. Mendes said [the decline in employment and hours worked, combined with the increase in the unemployment rate](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/), points to a shift in economic momentum.

## How Hard Was It to Find a Job in Canada in September?

It was harder than before the pandemic, as just [30.6% of people unemployed in August had found a job by September](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999), down from 32.8% a year earlier and well below the 2017 to 2019 average of 36.5%.

Layoffs themselves were not unusual, as the layoff rate was [0.7%, similar to the rate observed a year earlier (0.6%)](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm). The [job-finding rate sits well below its pre-pandemic average even as layoffs remain near normal](https://thehub.ca/2026/10/09/canada-shed-68000-jobs-in-september-statistics-canada-reports/), according to The Hub's analysis. There was [another increase in permanent layoffs on a month-over-month basis](https://www.rbc.com/en/economics/?p=15740), which pushed that group to closer to a quarter of all unemployment, and [both temporary and permanent layoffs increased in September](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html).

Among youth aged 15 to 19, the unemployment rate [climbed 0.7 ppts to 19.3%](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html), while for those aged 20 to 24 it fell to 9.9%. The unemployment rate for Canadians aged 15 to 24 [climbed from 10 percent in 2022 to 13.8 percent in 2025](https://thehub.ca/2026/10/09/canada-shed-68000-jobs-in-september-statistics-canada-reports/), according to a Fraser Institute report by Philip Cross cited by The Hub.

## Are Canadian Wages Keeping Up With Prices?

Not quite, by one measure. Average hourly wages among employees [rose 2.3% (+$0.86 to $37.64)](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm) on a year-over-year basis in September, after growth of 2.0% in August. Recent hourly wage gains in both the goods and services sectors [have slipped below the rise in the cost of living](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html), according to Desjardins.

In Quebec, average hourly wage growth [edged up to 3.5%, from 3.3% in August](https://www.desjardins.com/en/savings-investment/economic-studies/quebec-employment-october-9-2026.html), so wages there continue to rise faster than inflation, which suggests several parts of the Quebec market remain relatively tight, particularly outside major urban centres, according to Desjardins.

## Why Do Reports on the September Numbers Disagree?

Several figures in the coverage look different.

- **68,000 or 68,300?** September's loss is [68,000 in the official release](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm) and [68,300 in the Reuters story](https://www.bnnbloomberg.ca/business/economics/2026/10/09/canadas-employment-surprisingly-shrinks-in-september-jobless-rate-inches-up/). The same applies to August, shown as [a decrease of 42,000](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm) in the official release and as [41,700 jobs](https://www.bnnbloomberg.ca/business/economics/2026/10/09/canadas-employment-surprisingly-shrinks-in-september-jobless-rate-inches-up/) in the Reuters story.
- **Did the unemployment rate hold?** No. It [rose 0.1 percentage points to 6.5%](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm) from 6.4% in July and August. Any headline saying it held steady is wrong. What is true is that 6.5% is [the same as it was at the start of the year](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm).
- **Were all 2026 gains erased?** On a calendar-year basis, the year-to-date count is [-41,000 by RBC's count](https://www.rbc.com/en/economics/?p=15740) and [a net loss of 41,200 in the Reuters story](https://www.bnnbloomberg.ca/business/economics/2026/10/09/canadas-employment-surprisingly-shrinks-in-september-jobless-rate-inches-up/), which said September's drop erased all the employment gains recorded earlier this year. Over 12 months, though, employment was still [up by 95,000 (+0.5%)](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm). Both are true because they measure different windows.
- **Lowest participation since when?** The 64.8% rate is [the lowest level since December 1997](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), excluding 2020, while RBC dates it to [the lowest since May 1997](https://www.rbc.com/en/economics/?p=15740) outside the pandemic years. The official release gives December.

## What Comes Next for Interest Rates and the Next Jobs Report?

The jobs data is [the Bank of Canada's last look at the labour market](https://www.cbc.ca/news/business/canada-jobs-numbers-september-2026-9.7375345) before its next interest rate decision on October 28. That date is on [the bank's published 2026 schedule](https://www.bankofcanada.ca/2025/08/bank-canada-publishes-2026-schedule-policy-interest-rate-announcements-other-major-publications/), with one more announcement on Wednesday, December 9, and the key rate [is 2.25 per cent](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/).

CIBC senior economist Andrew Grantham expects the bank to [remain patient and keep interest rates on hold at the two remaining meetings this year](https://www.cbc.ca/news/business/canada-jobs-numbers-september-2026-9.7375345), and Desjardins says that if energy and tariff price pressures persist, they [could bring forward the timing of the Bank's next rate hike](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html) from Desjardins' current call for Q1 2027.

The next Labour Force Survey is due on [November 6, 2026](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), covering the week of October 11 to 17. RBC expects [the unemployment rate to broadly edge lower through the end of 2026](https://www.rbc.com/en/economics/?p=15740), while TD's Andrew Hencic expects it to [tread water in coming months](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/). Those views differ, so treat both as forecasts.

## What Should You Know About EI If You Lost Your Job?

[Apply for Employment Insurance (EI) benefits as soon as possible](https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility). To qualify you must have been [employed in insurable employment, lost your job through no fault of your own](https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility) (including if you are affected by flooding or wildfires), been without work and without pay for at least 7 consecutive days in the last 52 weeks, worked the required number of insurable hours in the last 52 weeks or since the start of your last EI claim, whichever is shorter, be ready, willing and capable of working each day, and be actively seeking work and keeping a written record of employers you contact, including when you contact them.

You need [between 420 and 700 hours of insurable employment](https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility) during the qualifying period, based on the rate of unemployment in your region. In a region with a rate of 6% and under, the requirement without a violation is [700 hours](https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility), while a rate of 6.1% to 7% needs 665 hours. Statistics Canada publishes the [regional unemployment rates used by the Employment Insurance program](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm) as a table in the September release.

To prove your eligibility and receive payments, you must [complete EI reports every 2 weeks](https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility) by internet or telephone, and failure to do so can mean a loss of benefits.

Teachers in primary, secondary and other schools may be able to receive regular benefits in non-teaching periods only under [certain conditions](https://www.canada.ca/en/services/benefits/ei/ei-teachers.html), for example if your teaching contract ends or you teach on a casual or substitute basis. If you apply [more than 4 weeks after your last day of work, you may lose benefits](https://www.canada.ca/en/services/benefits/ei/ei-teachers.html).

> "As few teaching positions are available during non-teaching periods, you may have to consider non-teaching jobs," according to [the federal page on EI and teachers](https://www.canada.ca/en/services/benefits/ei/ei-teachers.html).

## What This Means for Job Seekers, and What Should You Do Next?

The [job-finding rate was 30.6%](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm) while the layoff rate stayed similar to a year earlier, and The Hub's analysis says the weakness is [concentrated in the entry-level and public-sector jobs](https://thehub.ca/2026/10/09/canada-shed-68000-jobs-in-september-statistics-canada-reports/).

- **If you work in schools or the public sector, widen your**[job search after a layoff](https://www.metaintro.com/blog/job-search-with-ai-after-a-layoff)**now.** Public sector jobs fell for [the fourth consecutive month](https://www.theglobeandmail.com/business/article-canadian-jobs-report-economy-september-2026/), while private sector employment [remains up 163,000 over 12 months](https://thehub.ca/2026/10/09/canada-shed-68000-jobs-in-september-statistics-canada-reports/).
- **Look where the growth is.** Other services, which includes repair and maintenance, [was up by 32,000 (+4.1%) compared with September 2025](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), and health care and social assistance was still [the biggest driver of job growth over the past year (+93,000)](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999) despite September's dip.
- **In Quebec, follow the private sector.** The province's [private sector posted a gain of 24,100 jobs](https://www.desjardins.com/en/savings-investment/economic-studies/quebec-employment-october-9-2026.html) even as the public sector shrank, while [accommodation and food services and professional, scientific and technical services posted gains](https://www.desjardins.com/en/savings-investment/economic-studies/quebec-employment-october-9-2026.html).
- **Negotiate with real numbers.** With national wage growth at 2.3% and recent hourly gains [slipping below the rise in the cost of living](https://www.desjardins.com/en/savings-investment/economic-studies/canada-employment-9-october-2026.html), compare any offer with the rise in the cost of living, not only with the 2.3% average.
- **File EI early.** [Apply for EI benefits as soon as possible](https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility), and if you teach, note that if you apply [more than 4 weeks after your last day of work, you may lose benefits](https://www.canada.ca/en/services/benefits/ei/ei-teachers.html).

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## People Also Asked

### Q: How many jobs did Canada lose in September 2026?

A: Employment [declined by 68,000 (-0.3%) in September](https://www150.statcan.gc.ca/n1/daily-quotidien/261009/dq261009a-eng.htm), after a decrease of 42,000 in August, though employment was still up 95,000 from a year earlier.

### Q: What is Canada's unemployment rate now?

A: The rate [ticked up by 0.1 percentage points to 6.5 per cent](https://www.cbc.ca/news/business/canada-jobs-numbers-september-2026-9.7375345) in September, which is where it stood at the start of 2026. It did not hold steady, since it [inched up to 6.5 per cent from 6.4 per cent in August](https://www.bnnbloomberg.ca/business/economics/2026/10/09/canadas-employment-surprisingly-shrinks-in-september-jobless-rate-inches-up/).

### Q: Which province lost the most jobs in September?

A: Quebec lost the most, [shedding 49,000 jobs (-1.1%)](https://www.hrreporter.com/focus-areas/recruitment-and-staffing/canada-loses-68000-jobs-in-september/394999) as its unemployment rate rose to 6.0%, while Alberta added 23,000 jobs.

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