Canada’s unemployment rate rose to 6.7% in October as the labour market lost 4,700 jobs, highlighting growing pressure on job seekers despite relatively stable overall employment.
According to Statistics Canada’s Labour Force Survey released on November 6, the unemployment rate increased by 0.2 percentage points, while the employment rate declined to 60.5%.
The report revealed a particularly difficult situation for young Canadians aged 15 to 24, whose unemployment rate climbed to 13.7%, an increase of 0.7 percentage points.
Private Sector Employment Declines
Private sector employment fell by 53,000 jobs in October, marking its first monthly decline since February.
Public sector employment, meanwhile, increased by 50,000 jobs, partially offsetting private sector losses.
The contrast suggests that overall employment stability is masking significant differences between sectors.
Wholesale and retail trade lost 29,000 positions, while construction gained 16,000 and educational services added 15,000.
Regional Differences
Employment declined in Alberta and Prince Edward Island, while British Columbia and Newfoundland and Labrador recorded increases.
These differences illustrate how economic conditions vary across Canada’s provinces.
Wage Growth Remains Modest
Average hourly wages increased by 2.2% compared with October 2025, reaching C$37.89.
For workers, wage growth must be considered alongside inflation and household expenses to assess changes in purchasing power.
What the Figures Mean
Canada’s labour market has now recorded three consecutive monthly declines in the employment rate.
The increase in youth unemployment raises particular concerns about opportunities for new graduates and people entering the workforce.
Future employment reports will help determine whether October’s weakness represents a temporary slowdown or a more persistent trend.
