Canada Loses 4,700 Jobs in October as Unemployment Rate Rises to 6.7%

By: Ebenezer Adugyamfi & Emmanuel Ayiku for GhanaianNewsCanada
November 7, 2026

Canada’s labour market weakened further in October, with the economy losing 4,700 jobs despite economists expecting employment to rebound, while the national unemployment rate increased to 6.7 per cent.

Statistics Canada’s latest Labour Force Survey, released on Friday, November 6, showed that employment remained virtually unchanged overall, following significant declines in August and September.

Economists surveyed by Reuters had expected the Canadian economy to add approximately 13,600 jobs during the month, with unemployment remaining at 6.5 per cent.

Instead, the unemployment rate rose by 0.2 percentage points to 6.7 per cent as more Canadians entered the labour market looking for work.

The latest figures raise fresh concerns about the direction of Canada’s employment market, particularly as businesses continue to navigate economic uncertainty, trade tensions with the United States and changing consumer demand.

Employment declines for the third consecutive month

October’s decline follows job losses of approximately 68,000 in September and 42,000 in August.

Together, the three months represent a significant period of weakness for Canada’s labour market.

Statistics Canada reported that employment decreased by 4,700 positions in October, while the employment rate — the proportion of Canadians aged 15 and older who are employed — fell by 0.1 percentage points to 60.5 per cent.

The employment rate has now declined for three consecutive months.

Over the 12 months leading up to October, employment recorded little overall change, increasing by just 17,000 positions, or 0.1 per cent.

The figures suggest that Canada’s labour market has struggled to generate meaningful employment growth despite expectations of a recovery.

Youth unemployment rises to 13.7 per cent

Young Canadians continue to face considerable challenges in finding employment.

Statistics Canada reported that unemployment among people aged 15 to 24 increased by 0.7 percentage points to 13.7 per cent in October.

The situation was particularly difficult for students, whose unemployment rate stood at 13.5 per cent, compared with 12.3 per cent among young people who were not attending school.

The youth employment rate remained at 54 per cent, showing little change during the month.

The figures highlight the difficulties facing young people entering the workforce, including students searching for part-time employment and graduates attempting to secure their first professional opportunities.

For international students and young newcomers hoping to establish themselves in Canada, the figures provide an important indication of the competitive employment environment.

However, the national youth unemployment rate does not represent the experience of every student, immigrant or region.

Private-sector employment records major decline

One of the notable developments in October was the reduction in private-sector employment.

Statistics Canada reported that the number of private-sector employees fell by 53,000, representing a 0.4 per cent decline.

It was the first monthly drop in private-sector employment since February.

Meanwhile, public-sector employment increased by 50,000, or 1.1 per cent, following four consecutive months of declines.

Despite October’s increase, public-sector employment remained 70,000 positions below its level a year earlier.

Private-sector employment was slightly higher than a year earlier, with an increase of 35,000 positions.

The figures indicate that the October decline was concentrated in private-sector employment, even as public-sector hiring provided some support to the overall labour market.

Retail and wholesale trade shed nearly 29,000 jobs

The wholesale and retail trade industry recorded one of the largest employment declines during October.

Statistics Canada reported that the sector lost approximately 29,000 positions, representing a 1 per cent monthly decline.

Employment in the industry has also been trending downward over the past year, with a reduction of 113,000 positions, or 3.7 per cent.

Transportation and warehousing also experienced employment losses, adding to concerns about the performance of some business sectors.

However, not all industries recorded declines.

Construction employment increased by 16,000 positions, representing growth of 0.9 per cent.

Educational services also added 15,000 jobs, partially offsetting the decline recorded in September.

The contrasting performances show that employment conditions vary considerably across Canada’s industries.

Alberta and Ontario face employment pressures

The provincial figures also revealed differences in labour-market performance across the country.

Alberta recorded a decline of 24,000 jobs in October, equivalent to 0.9 per cent. Its unemployment rate increased by 0.9 percentage points to 7.3 per cent.

Prince Edward Island also recorded an employment decline of 1,300 positions, while its unemployment rate increased slightly to 7.4 per cent.

Ontario’s employment level remained virtually unchanged for a third consecutive month, but its unemployment rate increased by 0.3 percentage points to 7.3 per cent.

British Columbia recorded an employment increase of 12,000 positions, while Newfoundland and Labrador added 2,900 jobs.

Quebec’s employment level remained relatively stable, with its unemployment rate falling by 0.3 percentage points to 5.7 per cent.

The provincial differences underline how employment conditions are not developing uniformly across Canada.

More Canadians struggling with everyday expenses

Beyond employment, Statistics Canada also highlighted growing financial pressures among Canadian households.

In October, 29.7 per cent of Canadians aged 15 and older lived in households that had experienced difficulty meeting essential financial needs during the previous four weeks.

These needs included housing, transportation, food, clothing and other necessary expenses.

The proportion increased by two percentage points compared with October 2025, marking the first annual increase since 2022.

The situation was particularly difficult for people living in single-parent households.

Statistics Canada reported that 47.2 per cent of core-aged people living in single-parent households had experienced difficulties meeting their financial needs.

The figures suggest that employment challenges and household affordability pressures remain important concerns even as Canada’s broader economic indicators evolve.

Wages continue to increase, but job security remains a concern

Average hourly wages among employees increased by 2.2 per cent over the 12 months to October, reaching $37.89.

However, wage growth alone does not necessarily mean that households are experiencing improved financial security, particularly when employment opportunities remain limited and essential expenses continue to place pressure on incomes.

The unemployment rate also increased as 33,000 more people entered the labour force looking for work.

Among the 1.5 million Canadians classified as unemployed in October, nearly one-quarter, or 23.7 per cent, had been searching for work for at least 27 weeks.

That was higher than the 21.5 per cent recorded a year earlier.

The figures point to a persistent challenge for people who have been unable to secure employment despite actively searching for opportunities.

Trade tensions add uncertainty to Canada’s job market

The weakening labour market comes amid continuing economic uncertainty linked to trade relations between Canada and the United States.

Tariffs and uncertainty surrounding cross-border trade have created challenges for some Canadian businesses, particularly those operating in industries exposed to international markets.

Economists have warned that uncertainty can affect business confidence and hiring decisions as companies assess costs, demand and future investment conditions.

However, the latest employment figures do not establish that US tariffs alone caused October’s job losses.

Other factors, including domestic demand, industry-specific conditions and changes in hiring activity, also influence employment trends.

The Bank of Canada’s interest-rate decisions will also remain an important consideration as policymakers assess inflation and the health of the economy.

What the October figures mean for newcomers and jobseekers

For immigrants, international graduates and other newcomers hoping to build careers in Canada, the latest report provides an important reminder that securing employment can remain challenging even in a country with a large and developed economy.

The increase in youth unemployment and the decline in private-sector employment are particularly relevant to people seeking entry-level opportunities.

However, national figures do not tell the entire story. Employment prospects differ by province, occupation, qualifications and industry.

For prospective newcomers, the figures also reinforce the importance of researching employment conditions, professional licensing requirements and living costs before making relocation decisions.

Canada continues to offer employment opportunities, but the latest data suggest that jobseekers may need to prepare for stronger competition in some sectors.

Outlook remains uncertain ahead of November report

October’s disappointing figures have renewed questions about whether Canada’s labour market is entering a more prolonged period of weakness.

The economy has now recorded three consecutive monthly employment declines, while unemployment has increased from 6.4 per cent in August to 6.7 per cent in October.

Economists will be watching whether employment stabilises in November or whether the recent weakness continues.

Statistics Canada is scheduled to publish its next Labour Force Survey on December 4, 2026, providing a fresh assessment of employment conditions.

Until then, the October figures leave Canada’s policymakers, employers and jobseekers facing an increasingly important question: whether the country’s labour market can regain momentum as economic uncertainty persists.