Canada Jobs Report October 2026: Unemployment Rises to 6.7% as Economy Loses 4,700 Jobs

The Canada jobs report October 2026 showed the labour market weakening further, Statistics Canada said on 6 November 2026. The unemployment rate rose to 6.7% from 6.5% in September, a six-month high, and the economy lost a net 4,700 jobs. Analysts polled by Reuters had expected 13,600 new jobs and no change in the jobless rate, so the release missed forecasts on both counts.

At a glance	Canada jobs report, October 2026
Report	Labour Force Survey, October 2026, Statistics Canada, released 6 November 2026
Unemployment rate	6.7%, up from 6.5% in September; last higher at 6.9% in April
Net change in employment	Down 4,700; analysts polled by Reuters had forecast a rise of 13,600
Jobs lost in 2026 so far	46,000
Average monthly change in 2026	Down 4,590, against an average gain of 17,606 in 2025
Full-time employment	Down 18,100
Private-sector employees	Down 52,500, the first decline since February
Wholesale and retail trade	Down 28,800, the biggest decline in October
Transportation and warehousing	Down 10,100
Construction	Up 16,000
Youth unemployment, aged 15 to 24	13.7%, up 0.7 percentage points
Unemployment, people 55 and older	5.5%
Wage growth, permanent employees	2.0% year on year, from 2.3% in September
September	68,300 jobs lost

What the Canada jobs report October 2026 showed

All of the job losses were concentrated in full-time work, which shrank by 18,100 in October, Statistics Canada said. Private-sector employees fell by 52,500, the first decline in the private sector since February. Wholesale and retail trade contracted by 28,800 jobs, the biggest decline of any sector in October, followed by transportation and warehousing, down 10,100 positions. Construction was the bright spot, adding 16,000 jobs.

The weakness is not a one-month story. Canada has now shed 114,700 jobs since August, FXStreet reported, and the economy has lost 46,000 jobs in 2026 so far. On an average monthly basis, the Canadian economy has lost 4,590 jobs this year, against an average gain of 17,606 in 2025 and 33,675 in 2024, Statistics Canada said. September alone brought a loss of 68,300 jobs, so October's smaller decline is an improvement on the previous month, but it is still a loss against a forecast of growth.

September set the tone for October. That month's survey showed a loss of 68,300 jobs, with public-sector employment falling by 70,000 in a fourth consecutive monthly decline, led by educational services at 35,000, and manufacturing losing 13,000 positions in the first full month after a new round of US tariffs took effect against Canada. October's smaller loss therefore follows a heavy September, not a recovery, and the labour market has now shed jobs in three consecutive monthly surveys.

Young workers are bearing the heaviest burden. The unemployment rate among people aged 15 to 24 rose 0.7 percentage points to 13.7% in October, while the jobless rate among people aged 55 and older rose to 5.5%. Growth in average hourly wages for permanent employees, a closely watched measure of inflation pressure, slowed to 2% year on year in October, from 2.3% in September. More than one in four people in the employable population of 15 years and older found it difficult to meet financial needs for transportation, housing, food, clothing and other necessary expenses over the previous four weeks, Statistics Canada said.

Why Canada's jobs market is struggling

Trade tensions sit at the centre of the weakness. Reuters reported that the labour market has failed to post any job gains on average this year as trade tensions between the US and Canada worsened and businesses held back to save costs. The contrast with the United States could hardly be sharper: on the same day, the US jobs report October 2026 showed 165,000 new jobs and unemployment of 4.1%, while Canada lost jobs and its jobless rate climbed.

Young Canadians are feeling the squeeze most, and the same difficulty faces young workers south of the border, where Reuters reported that limited opportunities have made it difficult for young adults and recent college graduates to find work. When hiring slows, employers pick experienced workers first and new entrants wait longest, which is why youth unemployment has climbed to 13.7% while the overall rate sits at 6.7%. For school leavers and recent graduates, the practical lesson is to take any foothold that builds Canadian work experience, since a first job, even outside the preferred field, counts for more than a long gap waiting for the ideal opening.

The pattern also echoes what is happening in Britain, where the Bank of England said this week that artificial intelligence is freezing hiring rather than causing redundancies, with firms leaving posts unfilled. In Canada the pressure is different in origin, trade and cost caution rather than technology, but the result for jobseekers is similar: fewer openings, and more competition for the ones that exist.

What to do next if you are job hunting in Canada

Jobseekers should focus on the sectors still hiring. Construction added 16,000 jobs in October, the only clear area of growth in the release, and it is worth checking for openings there first. Young jobseekers face the toughest conditions, with youth unemployment at 13.7%, so new entrants should widen their search, consider short training that matches the sectors still hiring, and treat part-time or contract work as a foothold rather than a setback.

Workers in wholesale and retail trade and in transportation and warehousing, the two sectors that lost the most jobs in October, should check whether their skills transfer to construction, health care, or other areas still hiring, and ask their employer about retraining before a layoff notice arrives rather than after it. Short courses in the skilled trades match the one sector that is clearly adding jobs, and they give a worker something concrete to show a new employer.

For Nepali workers considering Canada, the report is a warning to plan carefully. A weakening labour market means fewer openings and longer searches, especially for newcomers without Canadian work experience. Apply only through official channels, such as the Government of Canada Job Bank and Immigration, Refugees and Citizenship Canada, and never pay anyone for a job offer, a work permit, or a guaranteed visa. Genuine Canadian employers do not charge applicants, and any agent promising a job in exchange for a fee is running a scam.

The next monthly survey will show whether October was a pause in the decline or the start of a longer slide. Until hiring turns, the practical step is to watch the sectors that are still adding jobs, keep applications going through official channels, and avoid paying anyone who promises a shortcut into the Canadian labour market.

Sources: Statistics Canada Labour Force Survey for October 2026, as reported by Reuters at https://www.reuters.com/world/americas/canadas-unemployment-rate-edges-up-six-month-high-october-2026-11-06/ on the unemployment rate, the job losses, the sector figures and the wage figures; FXStreet at https://www.fxstreet.com/news/canada-unemployment-rate-set-to-hold-at-65-as-hiring-recovers-202611060953 on the jobs shed since August, published 6 November 2026.