Canada Labour Force Survey September 2026: Job Losses Explained

Canada Labour Force Survey September 2026: Job losses explained

Canada’s Labour Force Survey for September found that employment fell by 68,000, or 0.3%, while the unemployment rate rose to 6.5%. The decline followed a loss of 42,000 jobs in August, reversing most of the 181,000 jobs added between April and July and leaving employment down 41,000 so far this year, according to Statistics Canada and RBC Economics.

The September 2026 Labour Force Survey Canada results were uneven rather than a broad decline across every group and region. Youth, public-sector employees, education workers, and Quebec absorbed much of the weakness, while Alberta added jobs and private-sector employment remained higher than a year earlier. For job seekers, the national headline is a starting point, not a complete picture of hiring conditions.

The survey reflects labour-market conditions during the reference week of September 13 to 19, not the Canadian labour market as of this week, Statistics Canada reported three weeks ago.

Canada unemployment rate September 2026: Who lost jobs?

The Canada unemployment rate in September 2026 rose by 0.1 percentage points to 6.5%, the same level recorded in January. It remained below the year’s 6.9% peak in April, while the employment rate fell by 0.2 percentage points to 60.6%, according to Statistics Canada.

Young workers experienced the sharpest decline. Employment among people aged 15 to 24 fell by 48,000, or 1.8%, in September, the second consecutive monthly decrease. The two-month decline reached 67,000, or 2.4%, offsetting gains recorded earlier in the year, Statistics Canada reported three weeks ago.

That age group accounted for about 70% of September’s overall employment decline, according to RBC Economics. RBC also noted that youth employment typically faces seasonal headwinds after the school year begins. That may explain part of the drop, but the LFS figures alone do not show how much reflected seasonal patterns and how much reflected broader hiring decisions.

Public-sector employment weakened as well. The number of public-sector employees fell by 70,000, or 1.5%, in September, marking a fourth consecutive monthly decline. Compared with a year earlier, public-sector employment was down by 119,000, or 2.6%, with most of the decrease attributable to educational services, according to Statistics Canada.

Private-sector employment was little changed for a second consecutive month, but it was up by 163,000, or 1.2%, from a year earlier, Statistics Canada reported. That split matters for anyone deciding whether to focus a search on public employers, private companies, or both.

September 2026 Canadian employment report by industry and region

Educational services lost 35,000 jobs, or 2.2%, in September after seven months of little change. Employment in the industry was down by 67,000, or 4.2%, from a year earlier, according to Statistics Canada.

Health care and social assistance also recorded a monthly decline, with employment falling by 23,000, or 0.8%. It was the industry’s first monthly decrease since December 2022. Even after that drop, employment in the industry remained 93,000, or 3.2%, higher than a year earlier, Statistics Canada reported.

Manufacturing employment fell by 13,000, or 0.7%, following an increase of 22,000, or 1.2%, in August. “Other services,” including repair and maintenance as well as personal and household services, moved in the opposite direction, gaining 17,000 jobs, or 2.1%, in September and 32,000, or 4.1%, over the year, according to Statistics Canada.

The regional results were just as divided. Quebec lost 49,000 jobs, or 1.1%, after losing 19,000, or 0.4%, in August. Its unemployment rate rose to 6.0%, up 0.4 percentage points during the month, Statistics Canada reported. RBC Economics said 37,500 of Quebec’s September losses were in educational services, though the broader LFS figures do not establish that education was the sole cause of the provincial decline.

Alberta moved in the other direction, adding 23,000 jobs, or 0.9%, in September. Employment there was up by 76,000, or 2.9%, from a year earlier, according to Statistics Canada. British Columbia lost 20,000 jobs, while Ontario’s employment edged down by 20,000, although Ontario remained up by 86,000 jobs, or 1.1%, year over year, Statistics Canada reported.

For job seekers, the practical step is to compare the conditions in a target province and industry before relocating or narrowing an application strategy. Alberta’s September increase does not guarantee an opening for a particular applicant, just as Quebec’s decline does not eliminate every opportunity there.

Why open positions can coexist with slower job finding

Job vacancies held steady at 510,200 in the second quarter of 2026, while the vacancy rate remained 2.8%, according to Statistics Canada. There were 3.0 unemployed people for every vacancy in that quarter, down slightly from 3.1 a year earlier, the same source reported.

Those figures do not mean every unemployed worker is a match for every open position. A vacancy may require a particular credential, location, schedule, or level of experience. The September job-finding rate was 30.6%, down from 32.8% a year earlier and below the 36.5% average recorded from 2017 to 2019, according to Statistics Canada.

The sector mix also matters. In the second quarter, vacancies rose year over year in trades, transport and equipment operators and related occupations by 6,500, or 6.6%, while vacancies in education, law and social, community and government services fell by 6,500, or 13.3%, Statistics Canada reported.

The average offered hourly wage for vacant positions was $28.55 in the second quarter, up 2.0% year over year. That is an advertised-vacancy measure, not a guaranteed starting wage or the average pay of all employees, according to Statistics Canada. Applicants should compare the figure with the wage listed in a specific posting, along with its hours, qualifications, and location.

What the participation rate adds

The labour force participation rate fell by 0.2 percentage points to 64.8% in September, its lowest level since December 1997 outside the pandemic period, according to Statistics Canada. The rate measures the share of people aged 15 and older who are employed or looking for work.

Someone who is not working and is not actively looking for work is not counted as unemployed. The lower participation rate should not be treated as proof of hidden unemployment, but it does mean that the unemployment rate is best read alongside the employment and participation rates.

Statistics Canada linked much of the longer-term participation decline to population aging. People aged 65 and older represented 23.2% of the working-age population in September, up from 20.5% in September 2019 and 14.8% around 2000, Statistics Canada reported.

Average hourly wages among employees rose 2.3% year over year to $37.64 in September, according to Statistics Canada. Total hours worked fell 1.5% that month, RBC Economics reported. Workers weighing an offer or raise should compare the pay, expected hours, and staffing plans rather than relying on the unemployment rate alone.

What the October release may clarify

Statistics Canada will release the October Labour Force Survey on November 6, 2026. The data will reflect conditions during the week of October 11 to 17, according to Statistics Canada.

Before that release, job seekers can review vacancies and wage benchmarks for their target occupation, compare regional unemployment conditions, and check whether employers are hiring for full-time, part-time, permanent, or temporary work. The Canada Labour Force Survey September 2026 results show a market that is weaker in some groups and regions, but not uniformly closed to applicants.