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Canada’s labour market weakened for a second consecutive month in September, with employment falling by 68,000 and the unemployment rate rising to 6.5%, Statistics Canada reported on October 9.
The decline was divided almost evenly between full-time work, down 35,000, and part-time work, down 33,000. It followed a 42,000 decline in August. Employment remained 95,000 higher than a year earlier, but the two-month slide erased much of the momentum recorded between April and July.
Young workers and public-sector jobs led the decline
Young workers bore the largest share of September’s decline. Employment among people aged 15 to 24 fell by 48,000. Statistics Canada also recorded losses in educational services, health care and social assistance, and manufacturing.
Public-sector employment fell by 70,000 and was down 119,000 from a year earlier. The employment rate — the share of people aged 15 and older who are working — declined to 60.6%.
Average hourly wages rose 2.3% from a year earlier to C$37.64, compared with 2.0% annual growth in August. The wage figure matters because a softer jobs market and persistent price pressure can point monetary policy in different directions.
What the report does and does not establish
Reuters noted that September was the first full month after a new round of US tariffs took effect, but the official survey does not establish that tariffs caused the overall job decline. Manufacturing lost roughly 13,000 positions, while larger declines occurred in public services.
One monthly survey can also be revised and can move for reasons that do not persist. The confirmed facts are the reported September declines and the higher jobless rate; it is too early to say from this release alone that Canada has entered a prolonged employment contraction.
Why it matters
The report matters for the Bank of Canada because officials are balancing labour-market weakness against inflation pressure from high energy prices. It does not predetermine the October 28 interest-rate decision. The next employment report and incoming inflation data will help show whether September was a temporary setback or part of a broader slowdown.
