Canada's Employment Falls by 42,000 in August 2026 as Wage Growth Slows
Canadian employment declined by 42,000 in August 2026, driven by losses among youth and core-age workers and in sectors such as business support services and public administration. The unemployment rate held steady at 6.4%, while year-over-year wage growth slowed to 2.0%, the weakest pace since November 2017 excluding pandemic years.
Employment in Canada declined by 42,000 (-0.2%) in August 2026, pushing the national employment rate down 0.1 percentage points to 60.8%. Despite the drop in jobs, the unemployment rate remained unchanged at 6.4%.
The overall decline was driven by losses among younger and core-age workers. Youth employment for those aged 15 to 24 fell by 19,000 (-0.7%), while core-age employment for workers aged 25 to 54 decreased by 16,000 (-0.1%). Within the core-age group, the unemployment rate for men rose 0.2 percentage points to 6.0%, whereas the rate for women fell 0.2 percentage points to 5.0%.
Sectoral shifts were mixed. Manufacturing employment increased by 22,000 (+1.2%), with most of the gain concentrated in Ontario. However, employment in business, building and other support services declined by 20,000 (-2.8%). Public sector employment also fell by 20,000 (-0.4%), marking its third consecutive monthly decline.
Average hourly wages rose by $0.71 to $37.02, representing a 2.0% year-over-year increase. This marked the slowest wage growth since November 2017, excluding the year 2021.
Regionally, Quebec recorded a decline of 19,000 jobs (-0.4%), concentrated in the Montréal census metropolitan area. It was the only province to post a year-over-year employment decrease, down 54,000 (-1.2%). Employment in Ontario edged down by 18,000 (-0.2%), while New Brunswick saw an increase of 2,400 (+0.6%).
The layoff rate stood at 0.8% in August 2026, slightly below the 1.0% observed 12 months earlier. Over the 12 months leading to August, industries dependent on U.S. demand for exports had an average layoff rate of 0.9%, compared with 0.7% for other industries.