Employment in Canada increased by 75,100 jobs in July before declining by 41,700 in August and 68,300 in September. As a result, Canada lost a net 34,900 jobs in Q3 2026, following a net increase of 88,300 jobs in Q2.
By industry, job gains were largely concentrated in professional, scientific and technical services (+23,000), manufacturing (+20,500), other services except public administration (+17,600) and construction (+16,500).
Canada's labour market lost momentum in Q3 after a strong start to the quarter. Employment growth in July, supported by broad-based hiring and a two-year low in unemployment, pointed to improving conditions. However, job losses in August and September offset those gains as public-sector employment contracted and trade-related uncertainty increased. Despite the slowdown, Lightcast data shows job postings increased by 13.3% in Q3. Demand for accounting and finance talent strengthened as firms began hiring for the 2027 tax season, with postings increasing for accountants (+3,615 QoQ), tax analysts and specialists (+1,547 QoQ), and financial managers (+1,298 QoQ).
Average hourly earnings for all employees increased 2.4% year-over-year (Q3 2025 to Q3 2026), down from 3.6% growth in Q2. Wages for workers in business, finance and administration occupations (except management) increased 4.5%, outpacing the overall average. Over the past several years, wage growth has slowed significantly. For comparison, year-over-year growth in average hourly wages averaged 4.9% throughout 2023 and 2024, before falling to an average of 3.4% in 2025, according to Statistics Canada.
Canadian employment declined by 34,900 jobs in Q3 2026, following a gain of 88,300 jobs in Q2. Employment had increased by a cumulative 181,000 jobs between April and July before turning negative in August and September.
The unemployment rate declined from an average of 6.7% in Q2 to 6.4% in Q3.
The labour force participation rate averaged 65.0% in Q3 2026, unchanged from Q2. In other words, the share of the population either working or actively seeking work did not change between Q2 and Q3.
An average of 1.0 million workers left their jobs each month during Q3, down from the Q2 average of 1.1 million.
Source: Statistics Canada
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