Canada lost 68,000 jobs in September as unemployment rate rose to 6.5%

The Story

Statistics Canada reported that the economy lost 68,000 positions in September, following a loss of 42,000 jobs in August. The unemployment rate edged up by 0.1 percentage points to 6.5% for last month.

The job losses were nearly evenly split between full-time and part-time work and were concentrated in the public sector. September marked the steepest single-month decline since February.

Before the back-to-back months of losses, employers added 181,000 positions from April through July. Employment was up 95,000 positions compared with September of the previous year.

Youth aged 15 to 24 took the biggest hit in September, with 48,000 fewer jobs. The unemployment rate for that age group was little changed at 13% because the labour pool for young workers was shrinking.

Women aged 25 to 54 lost 28,000 positions in September. By industry, educational services led the declines with 35,000 fewer jobs, followed by healthcare and manufacturing.

September also saw a gain of 17,000 jobs in a segment that includes repair, maintenance and other household and personal services.

Regionally, Quebec lost 49,000 jobs. Ontario and British Columbia both shed 20,000 positions, while Alberta added 23,000 jobs.

Average hourly wages rose 2.3% year over year in September, up from 2% in August. Statistics Canada’s September jobs figures were noted as the Bank of Canada’s last look at the labour market before its next interest rate decision scheduled for Oct. 28.