Canada’s unemployment rate climbs to 6.7%, youth rate hits 13.7%
- Canada’s unemployment rate rose 0.2 points to 6.7% in October 2026.
- Youth unemployment rose 0.7 points to 13.7%.
- Employment was little changed in October, down 4,700.
- Private sector employees fell by 53,000, the first decline since February.
OTTAWA, CANADA — Canada’s unemployment rate rose 0.2 percentage points to 6.7% in October as more people searched for work, while the youth jobless rate jumped 0.7 points to 13.7%. Employment was little changed, down 4,700, after declines of 68,000 in September and 42,000 in August.
The employment rate fell 0.1 points to 60.5%, its third straight monthly decline.
Private hiring slips
The number of private sector employees fell by 53,000 in October, the first decline since February, according to Statistics Canada. Public sector employees rose by 50,000 after four straight monthly declines totaling 148,000.
Wholesale and retail trade lost 29,000 jobs, while construction added 16,000 and educational services added 15,000. Average hourly wages rose 2.2% year over year to C$37.89 (about US$26.74).
Just under one in five unemployed people in September (18.9%) had found work in October. That job-finding rate is well below the 24.6% average for the same months from 2017 to 2019.
Longer searches for work
Nearly a quarter (23.7%) of the 1.5 million unemployed had been looking for work for 27 weeks or more. That share was 21.5% a year earlier and averaged 17.2% from 2017 to 2019.
Among youth, unemployment rose as employment edged down and more young people searched for work. Ontario’s rate rose 0.3 points to 7.3%, and Alberta’s rose 0.9 points to 7.3%.
Quebec’s employment held steady after falling by a combined 68,000 in August and September, while British Columbia added 12,000 jobs.
Strain on households and workers
The agency also found 29.7% of Canadians lived in households that struggled to meet financial needs in October, up 2.0 points from a year earlier. The share was highest in Southern Ontario, led by Oshawa at 38.4%.
Just over six in 10 workers (60.9%) said they were very satisfied with their job, slightly lower than in 2023. Sales and service workers were the least satisfied, at 54.3%, and had the lowest average hourly wage of any broad occupational group, at C$24.19 (about US$17.07).
What it means for employers
October’s figures show a Canadian labor market where more people are looking for work and searches are taking longer. Private employers cut staff even as the public sector added workers.
For Canadian companies managing costs, offshore outsourcing and labor arbitrage remain options for support roles, and OA’s list of the top call centers in Canada in 2026 helps compare domestic providers.
Related news
- Australia sheds 39,000 jobs in September, unemployment at 4.7% · 23 Oct 2026
- Canada sheds 68,000 jobs as youth employment falls: StatCan · 16 Oct 2026
- WestJet call center workers vote to unionize over offshoring · 29 Sep 2026
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
