OTTAWA — Canada’s labour market stumbled further into a slump in October, with the unemployment rate climbing to a six-month high and the economy shedding thousands of jobs. The latest data from Statistics Canada paints a bleak picture of an economy struggling under the weight of rising costs and cooling business confidence.
The unemployment rate edged up to 6.7 per cent in October, rising from 6.5 per cent in September. This marks the highest jobless rate since April, when the country saw unemployment hit 6.9 per cent. The news came as a sharp disappointment to market analysts, who had predicted the rate would hold steady at 6.5 per cent and expected a modest gain of 13,600 jobs. Instead, the Canadian economy lost a net of 4,700 positions, contributing to a year-to-date total of 46,000 jobs lost in 2024.
This performance stands in stark contrast to previous years, highlighting a significant loss of momentum. On average, the economy has lost 4,590 jobs per month this year, compared to robust monthly gains of 17,606 in 2025 and 33,675 in 2024.
The weakness was heavily concentrated in full-time employment, which shrunk by 18,100 positions last month. The private sector bore the brunt of the downturn, hemorrhaging 52,500 jobs—the first decline in private employment since February. Industry-wide, the wholesale and retail trade sector faced the steepest losses, contracting by 28,800 jobs. The transportation and warehousing sector followed, shedding 10,100 roles. One of the few bright spots was the construction industry, which added 16,000 jobs.
Analysts suggest the persistent labour market fragility stems from a combination of cooling domestic activity and heightened trade tensions with the United States, which have prompted businesses to scale back spending and freeze hiring.
The human cost of this stagnation is becoming increasingly apparent. According to Statistics Canada, more than one in four Canadians over the age of 15 reported difficulty meeting basic financial needs—including housing, food, and transportation—over the last four weeks.
Younger workers were hit particularly hard by the shift in the labour market, with the unemployment rate for those aged 15 to 24 spiking by 0.7 percentage points to 13.7 per cent. Older Canadians also faced increased difficulty, as the jobless rate for those 55 and older rose to 5.5 per cent.
Inflationary pressures appear to be cooling alongside employment growth. Average hourly wage growth for permanent employees, a key indicator for central bank policy, slowed to just two per cent year-on-year in October, down from 2.3 per cent in September. As the year draws to a close, the data underscores a period of significant economic retrenchment for Canadian households and businesses alike.
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