October 14, 2026

Employment declined by 68,000 (-0.3%) in September and the employment rate fell 0.2 percentage points to 60.6%. The unemployment rate increased 0.1 percentage points to 6.5%.

The employment decline was concentrated among youth aged 15 to 24 (-48,000; -1.8%) as well as women aged 25 to 54 (-28,000; -0.4%).

There were fewer people working in educational services (-35,000; -2.2%), health care and social assistance (-23,000; -0.8%) as well as manufacturing (-13,000; -0.7%). There were more people working in ‘other services’ (+17,000; +2.1%), which includes repair and maintenance as well as personal or household services.

Employment decreased in Quebec (-49,000; -1.1%), British Columbia (-20,000; -0.7%) and Manitoba (-4,400; -0.6%). It increased in Alberta (+23,000; +0.9%), Newfoundland and Labrador (+1,800; +0.7%), and Prince Edward Island (+1,000; +1.0%).

Average hourly wages among employees rose 2.3% (+$0.86 to $37.64) on a year-over-year basis in September, following growth of 2.0% in August (not seasonally adjusted).

Employment falls for second consecutive month

In September, employment declined by 68,000 (-0.3%), split between full-time work (-35,000; -0.2%) and part-time work (-33,000; -0.9%). The employment decline in September follows a decrease in August (-42,000; -0.2%).

Chart 1
Employment rate decreases in September

Prior to these two consecutive monthly declines, employment had trended up from April to July (+181,000; +0.9%). On a year-over-year basis, employment was up by 95,000 (+0.5%) in September.

The employment rate—the proportion of the population aged 15 and older who are employed—decreased by 0.2 percentage points to 60.6% in September, marking a second consecutive monthly decrease. On a year-over-year basis, the employment rate in September was unchanged.

Infographic 1
Employment rate by age group, September 2026

Downward trend in the number of public sector employees

In September, the number of public sector employees declined by 70,000 (-1.5%). This was the fourth consecutive monthly decline for the sector. On a year-over-year basis, the number of public sector employees was down by 119,000 (-2.6%), with most of the decline attributable to employment in educational services.

The number of private sector employees was little changed for a second consecutive month in September but it was up by 163,000 (+1.2%) compared with 12 months earlier.

Self-employment edged down in September (-23,000; -0.8%). This follows an upward trend from April to July. On a year-over-year basis, self-employment was up by 51,000 (+1.9%).

Unemployment rate increases to 6.5%

The unemployment rate rose 0.1 percentage points to 6.5% in September. Earlier in the year, it reached a recent peak of 6.9% in April, before declining to 6.4% in July and August. The unemployment rate in September was the same as it was at the start of the year (6.5% in January).

Chart 2
Unemployment rate rises to 6.5% in September

Infographic 2
Unemployment rate by age group, September 2026

The layoff rate—representing the proportion of people who were employed in August but had become unemployed in September as a result of a layoff—was 0.7%, similar to the rate observed a year earlier (0.6%) and the average during the period from 2017 to 2019 (0.6%) (not seasonally adjusted).

The job-finding rate was 30.6% in September, down from 32.8% 12 months earlier and below the average of 36.5% during the period from 2017 to 2019. This refers to the proportion of people who were unemployed in August and had found a job in September.

The labour force participation rate—the proportion of the population aged 15 and older who were employed or looking for work—fell 0.2 percentage points to 64.8% in September. This was the lowest level since December 1997 (when it was also 64.8%), excluding 2020 during the COVID-19 pandemic. On a year-over-year basis, the participation rate was down 0.4 percentage points in September 2026, largely the result of population aging.

Chart 3
Proportion of people aged 65 and older in the working-age population

Chart 4
Labour force participation rate, holding the age composition constant to September 2019

Youth employment declines

Employment among youth aged 15 to 24 fell (-48,000; -1.8%) for a second consecutive month in September. The cumulative decline over this two-month period (-67,000; -2.4%) offset gains recorded earlier from April to July. The employment decline in September was accompanied by a decline in the number of youth in the labour force (-50,000; -1.6%), and the youth unemployment rate was little changed at 13.0%.

Unemployment rate up for core-aged women

Among core-aged women (25 to 54 years old), the unemployment rate rose 0.3 percentage points to 5.3% in September, as employment fell (-28,000; -0.4%) and the number of women in this age group searching for work increased (+18,000; +4.9%). Despite the monthly increase, the unemployment rate for core-aged women in September was 0.5 percentage points lower than a year earlier and 0.6 percentage points below a recent peak of 5.9% in April.

Among core-aged men, employment held steady in September while the number of men in this age group searching for work edged down. As a result, the unemployment rate for core-aged men fell 0.2 percentage points to 5.8% in the month. Compared with the same month last year, the unemployment rate for core-aged men was down 0.3 percentage points in September.

The unemployment rate among people aged 55 and older rose 0.2 percentage points to 5.3% in September, as more people in this age group looked for work. On a year-over-year basis, the unemployment rate for this group was little changed in September.

Fewer people working in educational services, health care and social assistance as well as manufacturing

Employment in educational services fell by 35,000 (-2.2%) in September, following seven consecutive months of little change. Compared with September 2025, employment in educational services was down by 67,000 (-4.2%). The year-over-year decrease was concentrated in Quebec (-27,000; -7.0%), Ontario (-19,000; -3.2%) and Alberta (-17,000; -9.0%).

Chart 5
Employment change by industry, September 2026

Employment in health care and social assistance fell by 23,000 (-0.8%) in September, the first monthly decrease since December 2022. Despite the decline, employment in health care and social assistance was up by 93,000 (+3.2%) in the 12 months to September and was the largest contributor to overall employment growth over that period.

In September, employment also fell in manufacturing (-13,000; -0.7%), following an increase of 22,000 (+1.2%) in August. Employment in manufacturing was little changed in September compared with 12 months earlier.

Meanwhile, employment in ‘other services’ increased by 17,000 (+2.1%) in September and was up by 32,000 (+4.1%) compared with September 2025. This industry includes repair and maintenance as well as personal or household services.

Employment declines in Quebec and British Columbia, increases in Alberta

Employment in Quebec fell by 49,000 (-1.1%) in September, following a decrease of 19,000 (-0.4%) in August. Employment in the province has trended down since the start of the year, with a cumulative decline of 130,000 (-2.8%) from January to September. The unemployment rate in Quebec was 6.0% in September, up 0.4 percentage points in the month and up 0.8 percentage points from January.

Map 1
Unemployment rate by province and territory, September 2026

In British Columbia, employment fell by 20,000 (-0.7%) in September, marking the first monthly decrease since March for the province. The employment rate in British Columbia fell 0.4 percentage points to 60.5% while the unemployment rate was little changed at 6.4%.

Employment in Ontario edged down (-20,000; -0.2%) in September but was up by 86,000 (+1.1%) compared with 12 months earlier. The unemployment rate in Ontario was little changed at 7.0% in September but was down 0.9 percentage points from 12 months earlier.

On the other hand, employment in Alberta rose by 23,000 (+0.9%) in September and was up by 76,000 (+2.9%) compared with a year earlier. The unemployment rate in the province was 6.4% in September, down both in the month (-0.4 percentage points) and on a year-over-year basis (-1.3 percentage points).

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