September 2026 Unemployment Stats: What the Numbers Mean Heading Into Q4
September is often a month when the Canadian job market picks back up. Summer vacations have wrapped up, decision-makers return to the office, students head back to school, and businesses turn their attention to what needs to be accomplished before fiscal end.
After Canada lost 42,000 jobs in August and the national unemployment rate remained at 6.4%, we were watching September closely to see whether the fall would bring a renewed energy to the labour market.
Canada’s unemployment rate increased from 6.4% to 6.5% in September, while employment decreased by 68,000 jobs. If we compare this to last year, employment is still up 95,000 positions.
Again, youth saw the biggest loss with 48,000 fewer jobs which doesn’t come as a surprise after summer hiring comes to a close. We can look at some positive numbers. Alberta added 23,000 jobs with the majority falling into “other services” like maintenance and repair, and the average Canadian wages have increased 2.3% to $37.64.
What Does a Higher Unemployment Rate Mean?
An increase in unemployment doesn’t necessarily mean businesses have stopped hiring.
The unemployment rate can move due to changes in employment as well as more people entering or returning to the work force and actively looking for work. We spoke to Global Calgary earlier this week to speak about interprovincial migration and Canada’s continued growth. Click here to watch the Global story.
What it does tell us is that competition among job seekers remains high.
For employers, a larger candidate pool may sound like hiring should be easier. But more applicants don’t automatically mean more qualified applicants, and that is important to understand.
We continue to see employers looking for specific experience, technical ability, soft skills, availability, and culture fit. A job posting may receive plenty of applications while the employer still struggles to identify the right person for the position.
For job seekers, this means being intentional matters. Sending the same resumé to dozens of employers may not be enough in a competitive market. Make sure your application clearly connects your experience and transferable skills to the position you’re applying for.
The Number of Job Seekers Doesn’t Tell the Whole Story
One trend continues to stand out: there can be a disconnect between the number of people looking for work and the skills employers are looking for.
A recent Statistics Canada report found there were approximately 510,200 job vacancies across Canada in the second quarter of 2026. At the same time, employers have generally been taking more time to fill vacancies.
Employers may have access to a larger pool of candidates, but finding the right person still takes work. Job seekers may see plenty of competition, but employers are still hiring where there is a genuine business need.
That’s where recruitment becomes less about collecting applications and more about making the right match.
What We’re Seeing at About Staffing
“The labour market numbers only tell part of the story. What we’re seeing behind the numbers is a growing level of employee dissatisfaction and burn out, with medical leaves and unexpected resignations reaching unprecedented levels.
The market is becoming increasingly competitive being saturated with not only those unemployed but also those who are presently employed and looking to make a move.
Employers are navigating a challenging time where short and long-term absences and unexpected resignations are quickly impacting business operations.
All of this is making contingency planning and access to flexible talent more important than ever.”
— Cristina Schultz, Recruitment Manager, About Staffing
Heading Into the Final Quarter of 2026
October marks the beginning of the final push of the year, and for many organizations, that means looking closely at what still needs to be accomplished before December 31.
Projects need to be completed. Vacancies need to be filled. Holiday coverage needs to be planned. Some organizations are also beginning to think about budgets and staffing requirements for 2027.
For employers, now is a good time to ask:
Where are the gaps on our team?
What work needs to be completed before year-end?
Do we need a permanent employee, or could temporary or contract support help us accomplish what we need?
Are there positions we’re struggling to fill because we haven’t found the right person?
For job seekers, Q4 can create opportunities through permanent vacancies, year-end projects, temporary coverage, seasonal requirements, and organizations preparing for the new year. Keep the door open to work you may not have previously considered like temporary or contract roles that can often lead to full time positions.