Canada’s economy posted a second consecutive month of job losses in September, pushing up the unemployment rate and offsetting what had been a hot streak for the labour market earlier in the year.

Statistics Canada said Friday the economy lost 68,000 positions in September, coming off a loss of 42,000 roles in August. Economists had expected a gain of 9,200 jobs in the month.

StatCan said job losses were nearly evenly split between full- and part-time work and were concentrated in the public sector.

The unemployment rate edged up a tenth of a point to 6.5 per cent last month, back to where it stood at the start of the year in January.

September now marks the steepest single month of job losses since February.

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

Youth aged 15 to 24 bore the brunt of the losses in September with 48,000 fewer jobs, though a shrinking labour pool for young workers meant the unemployment rate for the cohort was little changed at 13 per cent.

Women aged 25 to 54 also lost 28,000 positions in September.

The educational services sector led the declines with a loss of 35,000 positions last month, followed by the healthcare and manufacturing industries. September, meanwhile, recorded a gain of 17,000 jobs from a segment that includes repair, maintenance and other household and personal services.

Provincially, Quebec stood out with a loss of 49,000 jobs last month, while Ontario and British Columbia both shed 20,000 positions. Alberta added 23,000 roles.

Average hourly wages rose 2.3 per cent on an annual basis last month, up from two per cent in August.

The September jobs figures mark the Bank of Canada’s last look at the labour market before its next interest rate decision set for Oct. 28.

This report by The Canadian Press was first published Oct. 9, 2026.