Canada sheds 68,000 jobs, unemployment rate up to 6.5% in September

Canada witnessed a second consecutive month of job losses in September, with the unemployment rate rising to 6.5 per cent, according to Statistics Canada. The economy shed 68,000 positions in the month, following a loss of 42,000 roles in August, which surprised economists who had anticipated a gain of 9,200 jobs. The job cuts were roughly balanced between full- and part-time employment and were primarily concentrated in the public sector.

The unemployment rate climbed by a tenth of a point to 6.5 per cent, returning to the level observed at the start of the year in January. September now marks the steepest single-month job loss since February. Prior to the consecutive months of job losses, employers had added 181,000 positions from April to July.

Youth aged 15 to 24 experienced the most significant impact, with 48,000 fewer jobs available, though the unemployment rate for this age group remained steady at 13 per cent due to a smaller labour pool. Women aged 25 to 54 also lost 28,000 positions during the same period.

The educational services sector saw the largest decline, with 35,000 jobs cut, followed by healthcare and manufacturing industries. September, however, recorded a gain of 17,000 jobs in a segment that includes repair, maintenance, and other household and personal services.

Provincially, Quebec was the hardest hit, losing 49,000 jobs, while Ontario and British Columbia each shed 20,000 positions. In contrast, Alberta added 23,000 roles. Average hourly wages increased by 2.3 per cent on an annual basis in September, up from 2 per cent in August. The jobs figures represent the Bank of Canada's final look at the labour market before its next interest rate decision scheduled for October 28.