Canada sheds 68,000 jobs in September, wiping out the year's employment gains

Statistics Canada reported that the national economy unexpectedly lost 68,300 net jobs in September, following a loss of 41,700 positions in August and defying economist forecasts of a modest gain. The back-to-back monthly declines erased earlier 2026 gains, leaving net employment down roughly 41,200 year to date, while the unemployment rate edged upward to 6.5 per cent. The downturn was largely driven by the public sector, with educational services shedding 35,000 positions and healthcare dropping 23,000, alongside smaller contractions in manufacturing. The sharp cooling in the labour market has altered financial expectations, with money markets dramatically paring back the likelihood that the Bank of Canada will hike interest rates at its upcoming October policy decision. Also in this briefing: NDP's Avi Lewis calls on Ottawa to nationalize Stelco as layoffs proceed; P.E.I. murder charges dropped after police lose key evidence in 1988 cold case.

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