Canada shed 68,300 jobs in September, Statistics Canada reported Friday, while the unemployment rate ticked up to 6.5 per cent from 6.4 per cent. The decline was the largest since 2009 excluding 2020, and it caught economists off guard - analysts surveyed had expected a gain of about 9,200 positions.
The losses were concentrated in the public sector, which shed 70,000 jobs. Education lost 35,300 positions and health care and social assistance shed 23,100 - the first decline for that sector since December 2022. Manufacturing employment fell by 12,700, and total employment is now down 41,200 so far this year.
The report marked the first full month of hiring data after a new round of U.S. tariffs took effect, adding to concerns about trade pressure on the Canadian economy. The Canadian dollar fell to C$1.4299 following the release, its lowest level since April 2025.
Money markets pared back bets on a Bank of Canada rate hike this month, with the odds dipping from roughly 40 per cent to 27 per cent ahead of the central bank's Oct. 28 decision. Opposition MPs used the report on Parliament Hill to press the government over jobs, including calls to protect steel employment in Hamilton.
