Canada's labour market weakened again in September. Statistics Canada's Labour Force Survey, released on October 9, 2026, reported that employment fell by 68,000 (−0.3%) and the unemployment rate rose 0.1 percentage points to 6.5%. The figures are seasonally adjusted and describe the survey week of September 13 to 19.
- Employment: down 68,000 in September. Full-time work fell by 35,000 and part-time work by 33,000.
- Unemployment rate: 6.5%, up from 6.4% in July and August. It peaked at 6.9% in April.
- Compared with a year earlier: employment was still up 95,000 (+0.5%).
- Wages: average hourly wages for employees rose 2.3% year over year to $37.64 (not seasonally adjusted).
Where the jobs were lost
The decline was concentrated in the public sector, where the number of employees fell by 70,000 (−1.5%), the fourth monthly decrease in a row. Educational services lost 35,000 jobs and health care and social assistance lost 23,000. Manufacturing shed 13,000. The number of private-sector employees was little changed for the month.
Young people were hit hardest: employment for those aged 15 to 24 fell by 48,000, and the youth unemployment rate was 13.0%.
The picture differed sharply by province. Quebec lost 49,000 jobs (−1.1%), and its unemployment rate rose to 6.0%. Ontario and British Columbia each lost about 20,000. Alberta moved the other way, adding 23,000 jobs (+0.9%) as its unemployment rate fell to 6.4%. Newfoundland and Labrador had the highest provincial unemployment rate, at 9.1%.
Why it matters for mortgage borrowers
Jobs data matter to borrowers in two ways. The first is personal: lenders look at your income and employment when you buy, refinance or switch lenders, and a steady paycheque is what keeps payments on track.
The second is interest rates. The Bank of Canada held its policy rate at 2.25% on September 2. It said CPI inflation had been hovering around 3%, mainly because of higher gasoline prices, and that it saw upside risks to inflation, while labour demand remained subdued. Its next scheduled decision is October 28, 2026, alongside a new Monetary Policy Report.
Our interpretation: a weaker job market and above-target inflation pull in opposite directions, which is why forecasts for the next decision differ. September's report is one input among several, and no one can tell you in advance what the Bank will decide.
What you can do now
- Renewing in the next year? Start comparing early rather than waiting for your renewal letter. You can model payments at different rates with our mortgage renewal calculator.
- On a variable rate? Check how your payment would change if rates moved by a quarter point in either direction.
- Worried about your job? Talk to your lender early if you expect trouble making payments. Options are usually wider before a payment is missed than after.
- Buying with a pre-approval? Ask your lender whether it will reconfirm your employment before closing.
If you want someone to compare lenders on your behalf, you can find a mortgage broker in your area.
Sources
- Statistics Canada, Labour Force Survey, September 2026 (The Daily), 2026-10-09. Accessed 2026-10-14.
- Bank of Canada, Bank of Canada maintains the policy rate at 2¼%, 2026-09-02. Accessed 2026-10-14.
General information only, not financial advice. Figures are as reported by the sources linked above on the dates shown.
