Canada Sheds 42,000 Jobs in August; Unemployment Rate Holds at 6.4%
Canada's labour market stalled in August 2026 as employment fell by 42,000 positions, ending a four-month hiring streak. The jobless rate remained steady at 6.4%, while wage growth cooled significantly.
Canada's labour market lost momentum in August 2026, with employment declining by 42,000 jobs, breaking a hot streak that had added 181,000 positions from April through July. The unemployment rate held steady at 6.4%, though the composition of losses reveals deepening regional strain.
Job Losses by Sector and Region
The public sector shed 20,000 positions in its third straight month of losses, while there was little change in the private sector and self-employment. Employment declined among youth aged 15 to 24 (down 19,000) and edged down among core-age workers (25 to 54), with unemployment rising among core-aged men and falling for core-aged women.
Wage growth also cooled substantially, with the annual increase in average hourly wages dropping to 2% in August from 2.8% in July and 3.3% in June—the lowest rate since November 2017.
What This Means for Foreign Workers
If you are a temporary resident with a work permit expiring soon, the slowing labour market may make it harder to secure employer sponsorship for a new position or LMIA-based work permit. Consider exploring pathways like Express Entry or Provincial Nominee Programs now rather than waiting. If you work in public-sector roles (education, healthcare, government), be especially watchful of hiring freezes in your province.
Sources
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