The national unemployment rate fell to 6.5% in September, down by 0.1 percentage points, as youth and core-aged women drove job growth, Statistics Canada reported Friday. This marks the first decline in unemployment since January, with the largest gains seen among youth aged 15 to 24, whose job numbers increased by 33,000.
Despite the decline in unemployment, the employment rate dropped slightly to 60.7%, reflecting ongoing challenges as population growth continues to outpace job creation. The number of private-sector jobs rose by 61,000, while the public sector lost 24,000 positions, according to the agency.
Full-time employment surged by 112,000, offset by a decline in part-time jobs. Hourly wages also grew year-over-year by 4.6% to $35.59, albeit slightly slower than August’s 5.0% increase. Total hours worked fell by 0.4% in September, though they remained up 1.2% compared to a year earlier.
Provincially, employment gains were concentrated in Ontario and Quebec, which added 43,000 and 22,000 jobs, respectively. However, British Columbia saw a decrease of 18,000 jobs, marking its first significant drop this year.
Certain sectors saw notable job increases, including information, culture, and recreation, which rose by 22,000 jobs, and professional, scientific, and technical services, which added 21,000 positions. Wholesale and retail trade also saw gains after several months of decline, reversing a downward trend that had persisted since August 2023.
The report also underscored disparities in the labour market, with unemployment rates rising year-over-year among core-aged Black Canadians and South Asian Canadians, up by 3.1 percentage points to 11.0% and by 0.9 percentage points to 7.3%, respectively. In contrast, the rate for non-racialized, non-Indigenous Canadians of the same age group increased modestly.
Labour force participation fell to 64.9% in September, continuing a downward trend over recent months. Youth participation was particularly affected, with many young people possibly delaying entry into the workforce amid a higher unemployment rate.
Statistics Canada’s data also highlighted challenges faced by recent immigrants in finding jobs aligned with their education. In September, 30.5% of core-aged recent immigrants with post-secondary qualifications reported being overqualified for their jobs, compared to 19.7% of Canadian-born workers.
Unemployment rate by province
| Province | Jobless Rate (%) | Previous Month (%) |
|---|---|---|
| Newfoundland and Labrador | 10.0 | 10.4 |
| Prince Edward Island | 7.1 | 8.2 |
| Nova Scotia | 6.3 | 6.7 |
| New Brunswick | 6.7 | 6.5 |
| Quebec | 5.5 | 5.7 |
| Ontario | 6.9 | 7.1 |
| Manitoba | 5.7 | 5.8 |
| Saskatchewan | 5.7 | 5.4 |
| Alberta | 7.5 | 7.7 |
| British Columbia | 6.0 | 5.8 |
Unemployment rates by city
| City | Jobless Rate (%) | Previous Month (%) |
|---|---|---|
| St. John’s, N.L. | 6.8 | 7.1 |
| Halifax | 5.5 | 5.7 |
| Moncton, N.B. | 5.5 | 5.9 |
| Saint John, N.B. | 5.6 | 6.9 |
| Saguenay, Que. | 3.9 | 3.9 |
| Quebec City | 4.3 | 4.0 |
| Sherbrooke, Que. | 5.6 | 5.2 |
| Trois-Rivières, Que. | 6.6 | 6.7 |
| Montreal | 6.6 | 6.8 |
| Gatineau, Que. | 6.9 | 6.8 |
| Ottawa | 6.3 | 6.5 |
| Kingston, Ont. | 6.5 | 6.4 |
| Belleville, Ont. | 3.6 | 5.9 |
| Peterborough, Ont. | 4.7 | 4.5 |
| Oshawa, Ont. | 7.9 | 7.8 |
| Toronto | 8.0 | 8.0 |
| Hamilton, Ont. | 6.2 | 6.7 |
| St. Catharines-Niagara, Ont. | 7.0 | 7.5 |
| Kitchener-Cambridge-Waterloo, Ont. | 7.6 | 7.1 |
| Brantford, Ont. | 7.0 | 7.0 |
| Guelph, Ont. | 5.3 | 4.7 |
| London, Ont. | 6.4 | 6.5 |
| Windsor, Ont. | 8.9 | 9.2 |
| Barrie, Ont. | 5.9 | 6.5 |
| Greater Sudbury, Ont. | 5.7 | 6.0 |
| Thunder Bay, Ont. | 4.5 | 3.7 |
| Winnipeg | 5.8 | 5.5 |
| Regina | 6.3 | 6.4 |
| Saskatoon | 5.4 | 5.3 |
| Lethbridge, Alta. | 5.1 | 4.9 |
| Calgary | 7.4 | 7.5 |
| Edmonton | 9.0 | 8.6 |
| Kelowna, B.C. | 4.7 | 4.7 |
| Abbotsford-Mission, B.C. | 6.4 | 6.6 |
| Vancouver | 6.3 | 5.9 |
| Victoria | 3.4 | 3.3 |