10/11/2026
Employment in Canada fell by 68,300 last month, more than erasing previous job gains this year as the trade war with the U.S. drags on.
The unemployment rate ticked up to 6.5% in September from 6.4% in August, Statistics Canada reported on Friday.
The job loss reflected a decrease in public sector employment, which fell by 70,000. Education led the decline, with 35,300 fewer people working the sector. Employment also fell in healthcare and social assistance by 23,100.
Manufacturing saw a decrease in employment of 12,700.
Traders in overnight swaps had priced in a rate hike by December prior to the labour force survey release, but those expectations eased slightly after the print.
Governor Tiff Macklem warned last month that being too slow to hike could force the central bank to raise higher and faster later.
The bank will get a final reading on inflation on Oct. 19 ahead of its rate decision at the end of the month.