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- calendar_today November 2, 2026
Canada’s labour market continues to reflect a dynamic and shifting economic landscape, as evidenced by the latest official statistics. Employment levels, unemployment rates, and wage trends vary notably across provinces, industries, and demographic groups, with recent data illuminating both progress and emerging challenges.
In August 2026, overall employment in Canada decreased by 42,000 (-0.2%), pushing the national employment rate down 0.1 percentage points to 60.8%. Despite this monthly dip, year-over-year figures show an increase of 217,000 jobs (+1.0%). The national unemployment rate remained steady at 6.4%, following three consecutive monthly declines earlier in the summer. Public sector employment continued a downward trend, falling by 20,000 in August, and accumulating a 78,000 drop since May. By contrast, private sector employment was up 156,000 (+1.1%) year over year, while self-employment rose by 80,000 (+3.0%) over the same period. Among the unemployed, 24% were classified as long-term unemployed (searching for over 27 weeks), a proportion that has stayed higher than pre-pandemic levels [The Daily — Labour Force Survey, August 2026].
Demographic differences persist. Youth unemployment (ages 15–24) edged up to 12.9% in August, although this was 1.4 percentage points lower than the previous year, but remains above the 2017–2019 average of 10.8%. The unemployment rate for core-aged men (25 to 54) rose slightly to 6.0%, while for core-aged women it fell to 5.0%. Older workers (55+) saw little change with a 5.1% unemployment rate [The Daily — Labour Force Survey, August 2026].
Provincial variations are significant. In August, Quebec and Ontario experienced employment declines of 19,000 (-0.4%) and 18,000 (-0.2%), respectively, while New Brunswick saw an increase of 2,400 jobs (+0.6%). Unemployment rates varied, with Ontario at 6.9%, Quebec at 5.6%, and New Brunswick at 7.3%. British Columbia’s unemployment rate stood at 6.4% [Labour Statistics].
Wage growth across Canada has moderated. The average hourly wage among Canadian employees was $37.02 in August 2026, up 2.0% year over year—the slowest annual increase since November 2017 (excluding the pandemic year 2021). Wage growth has decelerated after a robust post-pandemic period, averaging 4.9% in 2023 and 2024, then slowing to an average of 3.4% in 2025. Wages for the lowest-earning quartile rose just 1.1% (to $18.66), while the highest quartile saw a 2.1% increase (to $65.15) [The Daily — Labour Force Survey, August 2026].
Average provincial weekly earnings and their annual growth rates also differed: Alberta saw average weekly earnings of $1,404.59 (up 3.5%), Ontario $1,395.60 (up 3.9%), and Newfoundland and Labrador $1,320.79 (up 2.3%). Manitoba posted stronger wage growth at 5.1%. Nationally, average weekly earnings were $1,354.55, a rise of 3.7% over the past 12 months [Labour Statistics].
Wage increases by industry further illustrate divergent trends. The annual average hourly wage for all industries in Canada rose from $35.20 in 2024 to $36.40 in 2025. The utilities sector led with $55.90 per hour, followed by public administration ($46.39), and professional, scientific, and technical services ($48.60). Lower-wage industries such as accommodation and food services stood at $20.98 per hour [Employee wages by industry, annual].
In summary, Canada’s labour market is marked by modest employment growth over the past year, stabilization in unemployment rates, and a broad—but slowing—upward trend in wages, with significant variation across sectors, provinces, and demographic groups. Policymakers and businesses should monitor these evolving indicators closely as they plan for the coming year.
