Canada lost 68,000 jobs in September, marking the second consecutive month of employment declines, according to Statistics Canada.
The unemployment rate rose 0.1 percentage points to 6.5 per cent, matching its level at the start of 2026. The losses surprised economists, who had expected the country to add 9,200 jobs.
The decline follows a loss of 42,000 jobs in August. Before the two monthly drops, Canada added 181,000 jobs between April and July. Employment remains 95,000 positions higher than a year ago.
BMO chief economist Doug Porter called the latest figures disappointing, noting that two consecutive months of major job losses are unusual.
Education, health care, social assistance and manufacturing saw the biggest declines. Gains in other services, including repair and maintenance, helped offset some of the losses.
Economists said the drop in education jobs, mainly in Quebec, could be temporary but may also reflect fewer international students. Manufacturing losses could signal that new tariffs introduced in August are affecting the sector.
The public sector lost 70,000 jobs in September, while private-sector employment remained relatively stable. Public-sector employment is down 119,000 positions compared with a year earlier.
Young people aged 15 to 24 accounted for 48,000 of the job losses. Their unemployment rate remained at 13 per cent as the number of young people looking for work also declined. Women aged 25 to 54 lost another 28,000 jobs.
Quebec recorded the largest provincial decline, losing 49,000 jobs, followed by British Columbia with 20,000. Alberta added 23,000 positions.
The report is the Bank of Canada’s final major look at the labour market before its next interest rate decision on Oct. 28.
CIBC senior economist Andrew Grantham said the weak figures support expectations that the central bank will keep interest rates unchanged at its remaining meetings this year, despite some uncertainty in the employment data.
