Canada sheds 4,700 jobs in October as unemployment rate rises to 6.7%
Employment in Canada fell by 4,700 jobs in October 2026, missing economists' expectations for a gain of 13,600 positions. The national unemployment rate climbed to 6.7%, driven by more people entering the workforce, while youth unemployment rose sharply to 13.7%.
Canada's labour market contracted slightly in October 2026, with employment decreasing by 4,700 jobs, representing a 0.0% change overall. The decline missed forecasts from economists polled by Reuters, who had expected the economy to add 13,600 jobs during the month.
The national unemployment rate rose by 0.2 percentage points to 6.7%, pushed higher as more people entered the workforce. Youth unemployment was particularly acute, with the rate for those aged 15 to 24 increasing by 0.7 percentage points to 13.7%. Meanwhile, nearly one-quarter (23.7%) of unemployed Canadians were in long-term unemployment, having searched for work for 27 weeks or more.
Sectoral shifts highlighted a sharp divide in the economy. Employment in the wholesale and retail trade sector fell by 29,000 jobs, a 1.0% decline. These losses were partially offset by gains elsewhere, including 16,000 jobs added in construction and 15,000 in educational services.
Private sector employment declined by 53,000 positions, marking the first drop since February 2026. In contrast, public sector employment rebounded, increasing by 50,000 positions, or 1.1%.
Regional disparities were also evident across the country. Alberta lost 24,000 jobs, a 0.9% decrease, while British Columbia gained 12,000 jobs, an increase of 0.4%.
Average hourly wages rose by 2.2% year-over-year to $37.89 in October 2026.
The labour market data follows significant employment declines recorded in August and September. It also arrives shortly after the Bank of Canada raised its benchmark interest rate by a quarter point to 2.5%.