Canada’s unemployment rate climbed to a six-month high in October, reaching 6.7%, up from 6.5% in September. The last time the rate was higher was in April at 6.9%. The economy shed a net 4,700 jobs last month, bringing the total job losses for the year to 46,000. The data highlights ongoing weakness in the labor market, which has seen no average job gains this year amid worsening trade tensions between the U.S. and Canada.
All job losses were concentrated in full-time employment, which shrank by 18,100 positions, primarily driven by a decline of 52,500 jobs in the private sector, the first such drop since February. The wholesale and retail trade sector saw the biggest decline, losing 28,800 jobs, followed by transportation and warehousing, which lost 10,100 positions. Construction was the only bright spot, adding 16,000 jobs in October.
The unemployment rate among youth (ages 15 to 24) rose by 0.7 percentage points to 13.7%, while the rate for those aged 55 and older increased to 5.5%. Additionally, more than one in four employable Canadians struggled to meet basic financial needs over the past four weeks. Growth in average hourly wages for permanent employees slowed to 2% year-over-year in October, down from 2.3% in September.
Analysts had expected an increase of 13,600 jobs in October, following a loss of 68,300 jobs in September, and had predicted the unemployment rate would remain unchanged at 6.5%. The average monthly job losses this year stand at 4,590, a stark contrast to the average gains of 17,606 in 2025 and 33,675 in 2024.