Canada’s Job Growth for 2026 Erased in September by High Job Losses, Unemployment Increases

Statistics Canada’s latest Labour Force Survey shows that unemployment has inched up to 6.5% again, after it held steady at 6.4% through July and August. While 6.5% is an increase from last month, it’s still lower than the high of 6.9% in 2026. It’s also lower than what we saw through most of 2025, where unemployment rates were as high as 7.1%. 

Key Takeaways

• Unemployment rate: 6.5 percent, up .1% from August 2026.
• Employment: Down 68,000 (-0.3 percent) in September, essentially erasing job growth from this year.
• Wages: Average hourly wages up 2.3 percent year-over-year to $37.64.
• Industries seeing gains: ‘Other services’, which includes repair and maintenance work, as well as personal and household services.
• Industries seeing losses: Educational services, health care and social assistance, and manufacturing
• Provincial employment changes: Employment increased in Alberta, Newfoundland and Labrador, and Prince Edward Island. It fell sharply in Quebec.

The Job Market in Canada’s Provinces in September 2026 

We’ll start with the bad news: job losses in Quebec were high, and the unemployment rate jumped .4% as a result. The unemployment rate also increased in Ontario and New Brunswick by.1%, and in Nova Scotia by .2%. These results surprised economists, who had broadly predicted that jobs would increase in September by around 9,000-10,000 positions. 

In terms of the unemployment rate, it wasn’t all bad news. Unemployment rates in Manitoba held steady. Plus, unemployment rates decreased in Alberta, BC, Prince Edward Island, and Saskatchewan. 

But as always, unemployment rates alone aren’t the whole picture. While BC’s unemployment rate decreased, this seems to have been from people no longer searching for employment. Jobs decreased in BC in September too, so this means that other factors caused the unemployment rate to drop (namely the number of people looking for work). 

Provincial Unemployment Rates Across Canada in September 2026 

Here are the provincial unemployment rates from Statistics Canada’s September 2026 Labour Force Survey: 

• Alberta: 6.4 percent
• British Columbia: 6.4 percent 
• Manitoba: 5.0 percent 
• New Brunswick: 7.4 percent 
• Newfoundland and Labrador: 9.1 percent 
• Nova Scotia: 6.3 percent 
• Ontario: 7.0 percent 
• Prince Edward Island: 7.3 percent 
• Quebec: 6.0 percent 
• Saskatchewan: 5.4 percent 

Changes in Provincial Unemployment from July to August 2026  

Who was hit hardest in Canada’s September 2026 Job Market? 

Who was hit hardest in Canada’s September 2026 Job Market? 

Public sector workers, generally, are most impacted by this month’s job market survey. Private sector employment is up by 163,000 jobs compared to September 2025, and was little changed since August 2026.  

One interesting part of this month’s job market report for our readers is the significant job losses in educational services. 35,000 jobs were lost in the educational sector this month alone, with jobs down 67,000 (4.2%) from September 2025. These job losses likely stem from the significant decreases we are seeing in the number of international students studying in Canada.  

Another potentially surprising finding in this jobs report is that manufacturing jobs haven’t been hit too hard by the recent trade friction between Canada and the US. There has been little change in the number of manufacturing jobs between September 2025 and 2026, despite increasing tariffs on Canadian goods within the US.  

Young workers, aged 15-24, also saw job losses in August and September. This seems to be a stubborn trend in Canada’s job market. It’s relevant to newcomers within this age bracket, since it shows that jobs are likely to be more competitive. That said, IEC workers hoping to work in seasonal jobs – including those at ski resorts – tend to face less competition in our experience.  

Core-aged women, between 25-54 years, also saw a sharp increase in unemployment rate. This, again, may be of interest to women newcomers within this age bracket.  

The Job Market in Canada’s Major Cities 

The job market in Montreal is struggling. Unemployment rates currently sit at 7.4%, up from 6.5% in August 2026 and 6.2% in September 2025. Newcomers hoping to move to Montreal may want to consider their options outside the province, depending on your particular industry and circumstances of course. Recent political changes in Quebec might be of interest to you, if you’re considering a move to Montreal or Quebec.  

Toronto’s unemployment rate also increased sharply from August to September 2026 (from 6.7% to 7.2%). But things are generally improving there, year over year, since we saw unemployment at around 8% or higher in 2025 in Toronto. That said, compared to many other provinces and cities in Canada, Toronto’s unemployment rate remains elevated.  

Things aren’t looking too much better in Vancouver this month, with unemployment increasing from 6.5% to 7.1%.  

The Impact of Canada’s Aging Population 

Canada’s immigration system has prioritized economic immigration in recent years, in part to bring in younger workers as older workers retire. Canadians aren’t having as many children as they used to, and the birth rate is quite low. This means that younger workers from outside countries have been brought in to replace the workers who leave the workforce in Canada.  

An interesting impact of the recent changes to Canada’s immigration policy is that it seems the slowing inflows of younger workers are impacting the unemployment rate in Canada. Since some workers are aging and leaving the workforce, and no younger newcomers are replacing them, there are fewer overall workers and, therefore, fewer people looking for work.  

While this can have the cosmetic impact of decreasing Canada’s unemployment rate, which is a good thing, it may also worsen job shortages in critical sectors. 

Expert resources to help immigrants get jobs in Canada

Canada’s job market provides a wealth of opportunity for newcomers, but it is only that — an opportunity.

To take full advantage, recent and prospective immigrants can leverage free government-funded resources and programs. We recently partnered with Canada InfoNet, a government-funded pre-arrival employment support program, to bring you two expert guides on transitioning to a career in Canada:

• Transitioning to the Canadian job market
• How to find a career mentor in Canada

The outlook on Canadian construction and infrastructure

Ruairi Spillaine, Outpost Recruitment and Moving2Canada founder, analyzes what’s happening in the construction sector in Canada.

“Canada’s construction sector continues to provide opportunities to experienced candidates who can differentiate themselves in a tighter employment market. While commercial and residential sectors are slower, institutional buildings and a buoyant infrastructure sector continue to drive employment opportunities from coast to coast. Meanwhile, Canada’s industrial sector including nuclear, mining and renewables is set for a strong 2026.“

 

If you are interested in working in Canada’s construction sector, Outpost helps motivated candidates find suitable jobs in Canada.

The agency works with general contractors, subcontractors, developers, and consultants who are hiring across senior management, operations, project management, site, design, quality, and commercial personnel.

Outpost Recruitment is actively looking for candidates for projects across Canada. View the latest job postings here.

How to get a job in Canada

If you’re looking for a job in Canada here are some steps you can take to land that sweet, sweet Canadian job offer.

• Get your resume in good shape. This crucial step is often left down the list of job seekers’ priorities, despite being arguably the most important step of all. Read our Canadian resume guide to get going.
• Start looking at open opportunities. Some companies are still hiring. Don’t believe us? Head over to our Jobs Board, populated daily with new positions across Canada.
• Build your network. You can assemble a team to help you in your job search. With ongoing physical distancing and travel restrictions, technology is your friend here. Read our networking guide, written by award-winning entrepreneur Ruairi Spillane, for expert advice.

Here’s a popular webinar from recruitment expert and Moving2Canada founder, Ruairi Spillane, about how to create the best resume for the Canadian jobs market:

New and improved Jobs Board

We have worked hard over recent weeks to ramp up the number and range of job postings on our Jobs Board.

We also have a number of other resources for helping you find your career in Canada. You’ll find broad-stroke information that will arm you with the knowledge you need to succeed, as well as industry-specific insights into finding jobs by industry, such as teaching.

Want to dig deeper into the Canada Jobs Report data? Try these interactive tools, courtesy of StatsCan.

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