Canadian payroll employment fell by 58,000 in September, erasing gains made over the summer months and signalling potential challenges ahead for employers navigating a cooling labour market.
The 0.3 per cent decline offset cumulative increases of 43,200 recorded in July and August, according to Statistics Canada’s Survey of Employment, Payrolls and Hours released Thursday. Year-over-year payroll employment remained essentially flat.
The September decrease affected 11 of 20 sectors, with educational services, manufacturing and professional services leading the downturn. Meanwhile, job vacancies rose 5.5 per cent to 486,000—the first monthly increase since January 2024.
Education sector sees sharp monthly decline
Educational services recorded the steepest drop, shedding 19,100 positions in September, a 1.3 per cent decrease that wiped out summer gains of 18,100. Year-over-year, the sector lost 17,500 jobs, with community colleges and CEGEPs bearing the brunt at 13,000 positions down.
Manufacturing continues eight-month slide
Manufacturing employment fell by 9,600 in September as 16 of 21 subsectors posted declines. Food manufacturing lost 2,100 jobs, while non-metallic mineral product manufacturing and paper manufacturing each shed 900 positions.
The sector has now lost 36,500 jobs since January 2025, a 2.3 per cent cumulative decline. Transportation equipment manufacturing led the year-to-date losses with 7,500 fewer positions.
Professional services drops for second straight month
Professional, scientific and technical services shed 6,400 jobs in September, marking a second consecutive monthly decline. The cumulative August-September drop of 12,000 positions followed a period of stability earlier in the year.
Management, scientific and technical consulting services led the decline with 6,800 fewer positions, while computer systems design and related services lost 2,800 jobs.
Real estate sector posts largest decline since 2021
Real estate and rental and leasing employment dropped by 5,400 in September, the sector’s steepest monthly decline since May 2021. Lessors of real estate accounted for 2,200 lost positions, while activities related to real estate shed 1,200 jobs.
Year-over-year, the sector was down 3,400 positions, with offices of real estate agents and brokers losing 1,600 jobs.
Weekly earnings rise 3.1 per cent annually
Average weekly earnings reached $1,317 in September, up 3.1 per cent from a year earlier and accelerating from August’s 2.7 per cent increase. Month-over-month earnings grew 0.7 per cent.
Average weekly hours worked rose 0.3 per cent month-over-month to 33.4 hours but remained 0.3 per cent below year-ago levels.
Job vacancies climb after months of decline
The 25,500 increase in job vacancies brought Canada’s total to 486,000 in September, though vacancies remained 9.3 per cent below year-ago levels. The job vacancy rate rose to 2.7 per cent from 2.6 per cent in August.
There were 3.3 unemployed persons for every job vacancy in September, down from 3.5 in August but up 0.6 from a year earlier.
Construction led sectoral gains with 5,100 additional vacancies, followed by manufacturing with 3,400. Health care and social assistance posted the largest year-over-year decline, down 16,200 vacancies.
Ontario accounted for most of the monthly increase, adding 11,200 vacancies to reach 173,400. Newfoundland and Labrador added 900 vacancies.
