Canada's unemployment rate rises to 6.7% in October as economy sheds 4,700 jobs

Statistics Canada released its October Labour Force Survey on Friday, November 6: the unemployment rate rose from 6.5% in September to 6.7%, a six-month high, while employment fell by a net 4,700 jobs — far short of the 13,600 gain economists polled by Reuters had expected. The report points to a labour market that has failed to post job gains on average this year. (Photo: job seekers, file image.)

Full-time work down 18,100

All of October's job losses were concentrated in full-time employment, which shrank by 18,100, led almost entirely by a 52,500 drop in private-sector employees. At the same time, 33,000 more people looked for work, pushing the jobless rate higher. Youth unemployment rose 0.7 percentage points to 13.7%. Construction added 16,000 jobs, one of the few industries to grow.

46,000 jobs lost so far this year

Including October, the economy has lost 46,000 jobs in total this year, and 114,700 since August. Employment fell by 68,300 in September and 42,000 in August. On average, the economy has lost 4,590 jobs a month so far in 2026, compared with average monthly gains of 17,606 in 2025 and 33,675 in 2024.

Wage growth slows to 2%

Growth in average hourly wages for permanent employees — a closely watched measure of inflation pressure — slowed to 2% year on year in October, from 2.3% in September. Reuters noted that worsening trade tensions with the United States have led businesses to hold back on hiring. The survey figures are seasonally adjusted and monthly readings can be volatile, so the trend will need confirmation from further data.