Canada Loses 68,300 Jobs as Education and Healthcare Sectors Shrink

Canada lost 68,300 jobs in September, with young workers and public sectors like education and healthcare taking the biggest hit.

Market · Source: Reuters

What happened

Canada lost 68,300 jobs in September. This marks the second straight month of employment declines. In August, the country lost roughly 42,000 jobs. The national unemployment rate climbed to 6.5 percent, up from 6.4 percent the previous month. The drop affected all types of work. Full-time employment fell by 35,000 jobs. Part-time employment dropped by 33,000 jobs. The overall employment rate fell to 60.6 percent.

The job losses hit specific groups and industries very hard. Educational services, healthcare, social assistance, and manufacturing saw the largest declines. Young workers aged 15 to 24 bore the brunt of the impact. They accounted for 48,000 of the lost jobs. Women aged 25 to 54 also faced a tough month, losing 28,000 positions. Meanwhile, more women in that age group started actively looking for work.

Geographically, the job losses varied widely. Quebec recorded the largest provincial decline, losing 49,000 jobs. British Columbia and Ontario each lost 20,000 jobs. Ontario's unemployment rate held steady at 7 percent. Alberta was the only major province to buck the trend, adding 23,000 positions. While tariffs add uncertainty for Canadian businesses, the September data does not prove tariffs caused these specific monthly job losses.

By the numbers

Why it matters

For job seekers weighing options between the US and Canada, these numbers show a rapidly cooling Canadian market. The public sector is often seen as a safe harbor during economic shifts. However, this report shows significant job shedding in education and healthcare. Candidates looking for stability cannot rely solely on these traditional fields. You have to look at the data and adjust your search strategy based on actual hiring trends.

The ripple effects are especially tough on new entrants to the workforce. With youth unemployment sitting at 13 percent, competition for entry-level roles is fierce. The number of young people participating in the labor force actually declined. The federal government is responding with wage subsidies to create 100,000 summer jobs for young people in 2026. However, immediate full-time opportunities remain scarce for recent graduates trying to build their careers.

Who this hits

Young workers and new grads

People aged 15 to 24 lost 48,000 jobs in September alone. The youth unemployment rate remains high at 13 percent as fewer young people participate in the labor force.

Women aged 25 to 54

This demographic experienced a loss of 28,000 jobs in September. At the same time, the number of women in this group actively looking for work increased.

Workers in education and healthcare

These public sectors saw notable employment declines. Job seekers targeting these fields will face a tighter market and more competition.

What to do this week

See who's hiring right now on GiraffyReach

My take

A cooling job market in Canada is a clear signal to diversify your job search. When traditional public sectors shed jobs, you must stay flexible. Keep your skills sharp and do not rely on assumptions about which industries are safe.

Sources

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