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Canada Loses 68,000 Jobs as Unemployment Rises to 6.5%

Statistics Canada2 min read7 sources

Why did Canada lose 68,000 jobs in September?

Canada's economy lost 68,000 jobs in September, data released Friday showed, far below the 9,200-job gain expected, as school and health care cuts pushed unemployment up to 6.5%.

Key numbers

Jobs change, September-68,000-0.3% vs forecast +9,200
Unemployment rate6.5%+0.1 pt from 6.4%
Jobs change, August-41,700Second straight monthly drop
Participation rate64.8%Lowest since 1997 (ex-2020)
USD/CAD1.4287Loonie -0.44% on the day

What happened

Canada's economy lost 68,000 jobs in September, data released Friday showed, far below the 9,200-job gain expected, as school and health care cuts pushed unemployment up to 6.5%. It was the second straight monthly drop, after 41,700 jobs were lost in August. Since January, Canada has lost a net 41,200 jobs, compared with a gain of 211,300 over the same stretch last year. Workers aged 15 to 24 lost 48,000 jobs, and education and health care lost about 58,000 combined.

Why it matters

Canada's job market is weakening, which can mean less income and fewer openings for ordinary families. The share of adults working or looking for work (the participation rate) fell to 64.8%, its lowest since 1997 outside the pandemic. The Canadian dollar fell to 1.4287 per US dollar, and traders pushed their expected Bank of Canada interest-rate hike from October to December.

Who this affects

Marketbearish
Medium impact
Loonie weakens; traders push back Canadian rate-hike bets.
Companybearish
Medium impact
Canadian workers face fewer jobs and weaker hiring.
Competitorsneutral
Low impact
US hiring also slowed, but Canada's drop is sharper.
Industrybearish
Medium impact
Education, health care and manufacturing lost the most jobs.

Canada vs United States, Euro Area

CanadaCAD6.5%-68,000Sep 2026
United StatesUSD4.2%+29,000Sep 2026
Euro areaEUR6.4%—Aug 2026

As of 2026-10-09

How we got here

  1. Canada reports 41,700 jobs lost in August; unemployment rate at 6.4%.

  2. US reports only 29,000 jobs added in September; unemployment rises to 4.2%.

  3. Canada reports 68,000 jobs lost in September; loonie falls to 1.4287 per US dollar.

What to watch

  • Bank of Canada rate decision; Desjardins expects rates unchanged after the weak jobs data.2026-10-28
  • Whether traders' expected Bank of Canada rate hike in December holds or fades.2026-12
  • Next Statistics Canada jobs report, for signs the two-month decline continues or reverses.2026-11

Educational content only. Not investment advice.

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