Canada lost 68,000 jobs in September; youth employment fell 1.8 percent

Canada lost 68,000 jobs in September, bringing employment down 0.2 percent and pushing the national unemployment rate up 0.1 percentage points to 6.5 percent, Statistics Canada reported Friday. The decline marks the second consecutive month of employment losses after the economy shed 42,000 jobs in August.

The impact on young workers was especially severe. Employment among people aged 15 to 24 fell by 48,000, representing a 1.8 percent drop. Women aged 25 to 54 also saw their employment decline by 28,000, a 0.4 percent decrease.

Ontario lost approximately 20,000 jobs in September, though the provincial unemployment rate remained steady at 7 percent. Year-over-year, Ontario employment was up by 86,000 compared to September 2025.

The weakness comes despite strong growth earlier in the year. From April through July, Canada added 181,000 jobs, representing 0.9 percent employment growth. A Merchant Growth survey found that 4 percent of Ontario small businesses plan to hire in the next six months, while 11 percent reported reducing staff or hours earlier in the year.