Canada's Labor Market Loses Jobs: Unemployment Reaches 6.7%

The unemployment rate in Canada rose to 6.7% in October 2026 amid an increase in the number of people seeking work and a decrease in employment. According to Statistics Canada, the number of employed people decreased by 4,700. This marks the third consecutive month of decline, while economists surveyed by Bloomberg had expected an increase in employment by 15,000 and unemployment to remain at 6.5%.

In the private sector, the number of workers decreased by 52,500, but this decline was partially offset by an increase in public sector employment by 49,600. Since the beginning of the year, the number of jobs in the country has decreased by 45,900, the largest decline for the same period since the COVID-19 pandemic.

Following the release of the statistics, traders reduced their expectations for a Bank of Canada interest rate hike in December: the probability of such a decision fell to about 33% from 40% the previous day. The yield on two-year government bonds fell to 3.113%, and the Canadian dollar continued to decline.

The most significant reduction in employment occurred in wholesale and retail trade: the sector lost 28,800 jobs in a month and 113,100 over the year. Meanwhile, employment in construction increased by 15,600 in October and by 47,000 over the year. In the educational services sector, employment increased by 15,000 for the month but was 48,300 below the level of a year ago.

The share of unemployed Canadians looking for work for at least 27 weeks rose to 23.7% from 21.5% a year earlier. Among young people aged 15 to 24, unemployment increased by 0.7 percentage points to 13.7%. Meanwhile, the average hourly wage for full-time permanent workers rose by 2% over the year compared to 2.3% the previous month.