Canada’s labor market faced a significant setback in September, as the economy shed 68,000 jobs, wiping out all employment gains recorded in 2026. The losses were particularly severe among young Canadians aged 15 to 24 and women aged 25 to 54, with the public sector bearing the brunt of the decline. The news comes as Stelco, a major steel producer, began issuing layoff notices to workers at its Hamilton facility, potentially affecting up to 500 jobs due to ongoing trade tensions.
Workers like Mike Watts, who received his layoff notice on his final day at Stelco, expressed deep uncertainty about their future. “What’s my future? That’s all I’m thinking about. What will I do next?” Watts said. The layoffs highlight the broader economic challenges facing Canada, where the labor market has lost 110,000 jobs over the past two months, reversing earlier gains.
Conservative Leader Pierre Poilievre criticized Prime Minister Mark Carney’s recent optimistic remarks about the economy, stating that Carney was “out of touch” with the reality facing workers. Meanwhile, Federal Industry Minister Mélanie Joly warned Cleveland-Cliffs, Stelco’s U.S. parent company, of potential legal action if it fails to honor its commitments to maintain jobs in Canada. Joly has given the company until October 13 to present a plan to meet its obligations.
Economists warn that the full impact of the trade war on Canada’s labor market has yet to be felt, particularly in industries heavily exposed to tariffs. While Cleveland-Cliffs has suggested affected workers could be recalled if a trade deal is reached, some workers, like Watts, view the offer as a form of pressure amid the ongoing disputes.