Canadian economy lost 68,000 jobs in September, marking second straight month of declines
The Canadian economy experienced a loss of 68,000 jobs in September, marking the second consecutive month of decline. Economists suggest the downturn may be linked to sector-specific weaknesses and the impact of new trade tariffs.
Why it matters
Signals potential economic instability in Canada and highlights the real-world impact of trade policy on the labor market.
The unemployment rate ticked up by 0.1 percentage points to 6.5 per cent, which is where it stood at the start of 2026.
The figures bucked economists' predictions for a gain of 9,200 positions in September. It comes after another surprise last month of 42,000 job losses for August , which snapped a hot streak for the labour market.
Before the two monthly declines, Statistics Canada data showed employment trending upward, with 181,000 jobs added between April and July. Employment is still up compared to a year ago by 95,000 positions.
BMO chief economist Doug Porter said job figures are often volatile, and have been especially so in recent years. Still, he noted it's rare to see two months in a row of job losses of this size.
"There's no question, this is a disappointing result," Porter said. "It does suggest the economy was struggling in the early fall."
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