Canada’s job market faced another setback in September, with a loss of 68,000 jobs following a 42,000 decline in August. The unemployment rate ticked up to 6.5%, signaling a cooling economy. Analysts suggest the Bank of Canada may hold interest rates steady later this month, reinforcing cautious optimism.
The public sector saw the largest decline, losing 70,000 positions, largely driven by education services in Quebec. Health care and manufacturing also experienced drops, with the latter possibly indicating early impacts from escalating trade tensions with the U.S.
Regionally, Quebec was the hardest hit, shedding 49,000 jobs, while British Columbia and Ontario each lost 20,000. Alberta, however, saw a 23,000-job increase. Youth employment fell for the second straight month, though the unemployment rate for this group remained steady at 13%.
Despite the downturn, some positives emerged. The private sector maintained steady employment, and the labour participation rate fell to its lowest level in nearly 30 years, partly due to demographic shifts. Analysts caution that trade frictions and higher interest rates could continue to weigh on economic activity.