Canada's economy spiraling: unemployment spikes amid cost crisis

Canada's job market is tanking, and one of the country's most visible business voices is sounding the alarm about what comes next. Yanik Guillemette, a prominent entrepreneur and investor, says the country is entering what he describes as a dangerous economic and social spiral. The evidence is hard to ignore: major job losses are piling up across 2026, hitting sectors from retail to finance to tech.

What makes Guillemette's warning significant is that it's coming from someone inside the business establishment, not from activist circles or opposition parties. He's pointing to two interconnected crises: rising unemployment and a cost-of-living collapse that's leaving Canadians unable to afford basic necessities. Rent, groceries, utilities—everything is getting more expensive while paycheques aren't keeping up.

The ripple effects are already visible. Families are choosing between paying rent and buying food. Workers are cycling through job searches longer than in previous recessions. Consumer spending is expected to slow further, which typically deepens economic contraction. It's a feedback loop that's hard to break once it gains momentum.

Guillemette isn't just diagnosing the problem—he's arguing that what Canada needs is fundamental economic realignment. The current model isn't working for enough people to sustain growth or social stability. Whether that means different fiscal policy, different labour protections, or structural changes to how the economy distributes opportunity remains the conversation for policymakers.

For Montréal residents and workers across Canada, the urgency is real. The next few months will determine whether this spiral can be arrested or whether 2026 becomes the year the economy tipped.