Canada Loses 68,300 Jobs in September as Tariff Uncertainty Deepens
Canada's employment fell by 68,300 in September, erasing all job gains made earlier in 2026. Public sector cuts—especially education and healthcare—led the decline, with unemployment rising to 6.5% as trade tensions with the U.S. weigh on the labour market.
Labour Force Survey September 2026
Employment declined by 68,000 in September and unemployment increased to 6.5%, according to Statistics Canada. The employment decline was split between full-time work (35,000 jobs lost) and part-time work (33,000 jobs lost), following a decrease in August of 42,000 jobs.
The losses were concentrated in specific sectors and regions. There were fewer people working in educational services (35,000), health care and social assistance (23,000), and manufacturing (13,000). Losses were concentrated in the public sector with about half occurring in education, possibly reflecting the impact of fewer international students.
Regional and Youth Employment Pressures
Employment decreased in Quebec (49,000), British Columbia (20,000), and Manitoba (4,400), while it increased in Alberta (23,000), Newfoundland and Labrador (1,800), and Prince Edward Island (1,000). The labour force participation rate fell 0.2 percentage points to 64.8 per cent, its lowest level in 29 years barring the pandemic era.
Young workers have been hit particularly hard. Employment among people aged 15 to 24 fell by 48,000 jobs, representing a 1.8 per cent monthly decline, bringing cumulative losses among young workers to 67,000 positions over the two-month period since August.
What This Means for Foreign Workers and Expats
If you're an international student or work permit holder in Canada, this report signals tightening conditions in the labour market, particularly in education and public-sector roles. The education job losses directly reflect reduced international student intake, which may affect post-secondary employment sponsorships and campus hiring. Private sector job creation in Alberta remains relatively strong, while Quebec and British Columbia face headwinds. When submitting work permit applications or considering which province to settle in, monitor provincial hiring trends closely—Alberta and Atlantic Canada still show job growth, while central Canada faces contraction.
Sources
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