Canada lost 68,300 jobs in September, scrambling the Bank of Canada's Oct. 28 call

Canada's economy lost a net 68,300 jobs in September, Statistics Canada reported Friday — a sharp miss against the 9,200-job gain analysts polled by Reuters had expected, and enough to erase every employment gain recorded this year.

The country has now lost a net 41,200 jobs since December 2025, compared with a gain of 211,300 over the same stretch last year. The unemployment rate ticked up to 6.5 per cent.

The participation rate fell to 64.8 per cent, its lowest in nearly three decades outside the pandemic — a sign that some Canadians have stopped looking for work altogether. Workers aged 15 to 24 were hit hardest, losing roughly 48,000 positions.

The losses were concentrated in the public sector — health care, education and social assistance — which the report tied to cuts in international-student permits. Manufacturing also shrank, adding fresh evidence that the U.S. trade war is biting into factory employment.

The report complicates the Bank of Canada's next move. The bank has held its policy rate at 2.25 per cent through seven straight decisions, and markets have now slashed the odds of a hike at the Oct. 28 meeting. But expectations of a December increase linger: inflation ran at 3.0 per cent in August, above target, and September CPI lands Oct. 19 — the same day as Alberta's referendum.