Canada's labour market flat in October as unemployment edges up to 6.7%

Canada’s labor market was essentially flat in October, but the unemployment rate edged higher, extending signs of a softer hiring environment after a much sharper employment drop in September.

Statistics Canada said Friday in its Labour Force Survey that employment was little changed in October, down 4,700 jobs from the previous month on a seasonally adjusted basis. The employment rate — the share of the population that is employed — slipped 0.1 percentage point to 60.5%, while the unemployment rate rose 0.2 percentage points to 6.7%.

That followed a weaker September, when employment fell by about 68,300, or 0.3%, and the unemployment rate was 6.5%. The comparison offers a mixed picture: October did not bring another large monthly decline in jobs, but the rise in unemployment still pointed to a labor market that remained soft overall.

The October figures reflect the survey’s reference week of Oct. 11-17, 2026. Statistics Canada’s Labour Force Survey is a monthly household survey, and its headline figures are seasonally adjusted to smooth predictable calendar effects. The agency commonly describes small monthly movements as “little changed,” and single-month results can be noisy because they are based on a sample rather than a full count.

For readers, the employment rate provides a broader measure than the job tally alone because it tracks how much of the population is working. Its decline to 60.5% in October suggested that, even with employment broadly flat on the month, labor market conditions weakened slightly.

The Labour Force Survey is one of Canada’s main monthly indicators of labor market conditions and is closely watched by policymakers and financial markets, though month-to-month readings can be volatile.