Canada's unemployment rate rises to 6.7% as October jobs stall

What the report shows. Employment was little changed in October, down 4,700, or 0.0%. The employment rate, the share of people 15 and older with a job, fell 0.1 points to 60.5%, a third straight decline. Unemployment rose 0.2 points to 6.7% as more people looked for work, up 33,000. That is still 0.2 points lower than a year ago and below this year's peak of 6.9% in April.

Who lost out. Private sector employees fell by 53,000, the first decline since February. The public sector added 50,000 after four months of cuts. Wholesale and retail trade lost the most jobs, down 29,000. Construction gained 16,000 and education 15,000. Youth unemployment, ages 15 to 24, jumped 0.7 points to 13.7%.

Where. Employment fell in Alberta, down 24,000, and its unemployment rate jumped 0.9 points to 7.3%. British Columbia added 12,000 jobs. In Ontario unemployment rose to 7.3%.

People's money. Average hourly wages rose 2.2% from a year earlier to C$37.89. Nearly 30% of Canadians (29.7%) live in households that found it hard to pay for transport, housing, food and clothing over the past month. That share rose for the first time since 2022.

Why markets care. Investing.com says the report adds to concerns about labour market momentum and that the Bank of Canada will watch it as it weighs economic weakness against inflation risks. One more jobs report comes out before the bank's December meeting. We do not forecast how rates or the currency will move.

Hechos confirmados

• Canadian employment was little changed in October 2026, down 4,700 (0.0%).^[1]
• The unemployment rate rose 0.2 points to 6.7%, a second straight increase.^[1]
• Economists expected an unemployment rate of 6.5%.^[2]
• Employment fell by 42,000 in August and 68,000 in September.^[1]
• The employment rate fell to 60.5%, a third straight decline.^[1]
• Private sector employees fell by 53,000, the first drop since February; the public sector added 50,000.^[1]
• Wholesale and retail trade lost 29,000 jobs; construction added 16,000 and education 15,000.^[1]
• Youth unemployment rose 0.7 points to 13.7%.^[1]
• Employment in Alberta fell by 24,000 and unemployment there rose to 7.3%.^[1]
• Average hourly wages rose 2.2% year on year to C$37.89.^[1]
• 29.7% of Canadians live in households struggling to meet basic needs, the first rise since 2022.^[1]
• The next Labour Force Survey comes out on December 4, 2026.^[1]

Implicaciones

• ConfirmadoCanada's job market is softening: unemployment rose for a second month and the private sector cut staff.
• Nuestra lecturaWeak data lowers the odds of another Bank of Canada rate hike in December. This is our view.
• Nuestra lecturaThe gap with a strong US report may weigh on the Canadian dollar. This is our view.

Todavía no se sabe

• What the Bank of Canada decides in December
• Whether the November report shows further weakness
• Where the Canadian dollar ends the day

A quién afecta

Canada, Global. People who hold Canadian dollars, Canadian stocks or bonds, or follow rates

Fuentes

1. Statistics Canada: Labour Force Survey, October 2026 6 de noviembre de 2026 · oficial
2. Investing.com: Canada's unemployment rate hits six-month high as economy sheds jobs in October 6 de noviembre de 2026 · medios