On This Page You Will Find
- Canada’s latest employment and unemployment figures
- Which industries lost the most jobs in August
- Where employment increased
- How Ontario and Quebec performed
- The latest youth unemployment figures
- What the weaker labour market means for immigration
- Why Canada still needs immigrants in targeted occupations
Canada lost 42,000 jobs in August as the labour market weakened following several months of employment growth, new Statistics Canada figures show.
Employment fell by 0.2 per cent during the month, while the employment rate declined 0.1 percentage points to 60.8 per cent. The unemployment rate remained unchanged at 6.4 per cent.
The figures underline the changing economic environment facing newcomers and prospective immigrants to Canada. While employers continue to report shortages in specific occupations and regions, the national labour market is no longer experiencing the widespread hiring pressure seen earlier in the decade.
Canada is responding by reducing overall temporary resident arrivals while increasingly targeting permanent immigration towards workers with skills in areas where shortages remain.
Canada Loses 42,000 Jobs In August
Statistics Canada’s August 2026 Labour Force Survey showed employment falling by 42,000, or 0.2 per cent.
The decline followed relatively strong employment growth earlier in the year. Canada added a cumulative 181,000 jobs between April and July, meaning the August decline reversed only part of those gains.
Employment remained 217,000, or 1.0 per cent, higher than a year earlier.
The number of people participating in the labour market also fell during August. The participation rate dropped 0.1 percentage points to 65.0 per cent.
Canada had approximately 1.46 million unemployed people during the month, while total employment stood at about 21.17 million.
Canada Unemployment Rate Remains At 6.4%
Despite the employment decline, Canada’s unemployment rate remained at 6.4 per cent in August.
That followed three consecutive monthly declines between May and July, when the unemployment rate fell by a combined 0.5 percentage points. July’s 6.4 per cent unemployment rate had been the lowest recorded in two years.
However, the figures continue to point to a more competitive job market than Canada experienced during the immediate post-pandemic period.
Long-term unemployment also remains a concern.
Statistics Canada reported that 24.0 per cent of unemployed people had been continuously searching for work for at least 27 weeks. That compares with an average of 17.1 per cent between 2017 and 2019, before the COVID-19 pandemic.
Which Canadian Industries Lost Jobs?
Employment losses were concentrated in several sectors.
Business, building and other support services recorded the largest decline, losing 20,000 jobs, or 2.8 per cent.
Public administration employment fell by 8,800, or 0.7 per cent, while natural resources lost 7,700 positions, representing a 2.3 per cent decline.
Utilities employment dropped by 5,600, or 3.5 per cent.
Manufacturing moved in the opposite direction.
The sector added 22,000 jobs in August, an increase of 1.2 per cent. It was the only industry to record a statistically significant employment increase during the month.
The figures demonstrate why headline national employment numbers do not necessarily reflect conditions in individual industries.
Ontario And Quebec Record Employment Declines
Canada’s two largest provinces accounted for much of the national employment decline.
Quebec lost 19,000 jobs in August, a decrease of 0.4 per cent.
Ontario employment edged down by 18,000, or 0.2 per cent.
New Brunswick moved in the opposite direction, adding 2,400 jobs, or 0.6 per cent. Employment was little changed in the other provinces.
The provincial differences are particularly relevant to immigration because Canada increasingly uses provincial and regional programs to direct newcomers towards areas with specific economic and demographic needs.
Youth Unemployment Remains High
Young Canadians continue to face a particularly challenging employment market.
Employment among people aged 15 to 24 fell by 19,000 in August, while the youth unemployment rate stood at 12.9 per cent.
The rate was little changed from July, when youth unemployment stood at 12.6 per cent.
A weaker youth labour market has become an important part of the wider debate surrounding Canada’s immigration and temporary resident policies.
The federal government has moved to reduce the number of international students and temporary foreign workers entering Canada as it attempts to bring temporary resident numbers down and ease pressure on housing, services and the labour market.
What Does Canada’s Weaker Labour Market Mean For Immigration?
The August Labour Force Survey reinforces the case for a more targeted Canadian immigration system.
Canada no longer faces the same broad-based labour shortages that characterized the economic recovery from the COVID-19 pandemic. Higher unemployment and weaker hiring mean newcomers can face greater competition when looking for work.
However, that does not mean Canada has stopped needing skilled immigrants.
National employment figures can hide major differences between occupations, industries and regions. Some employers continue to struggle to recruit people with particular qualifications or experience even when unemployment is elevated elsewhere in the economy.
This creates an important distinction for immigration policy.
Canada can reduce overall immigration and temporary resident numbers while continuing to recruit workers in occupations where domestic labour supply remains insufficient.
Canada Is Increasingly Targeting Immigration To Specific Skills
Canada’s immigration system has increasingly moved towards targeted economic selection.
Express Entry category-based selection allows the federal government to prioritize candidates with specific skills or characteristics rather than relying exclusively on their overall Comprehensive Ranking System scores.
Provincial nominee programs can similarly respond to regional labour market requirements, while other immigration pathways target communities and sectors struggling to attract enough workers.
Healthcare and social services, skilled trades and other strategically important occupations remain central to Canada’s economic immigration policy.
This means a weakening national labour market does not necessarily eliminate the need for immigration. Instead, it increases the importance of selecting immigrants whose skills closely match genuine shortages.
Job Seekers Should Research Their Occupation Before Moving To Canada
Prospective immigrants should not assume that Canada’s overall unemployment rate reflects their individual chances of finding employment.
Labour market conditions can vary substantially depending on a worker’s occupation, province, city, qualifications and experience.
A skilled worker considering Canada should therefore research employment prospects in their specific occupation and intended destination before making major immigration or employment decisions.
Candidates should also consider whether their occupation aligns with federal or provincial immigration priorities.
Canada’s August employment decline shows that the labour market is becoming more selective. For immigration candidates, choosing the right occupation, immigration program and destination could therefore become increasingly important.
Frequently Asked Questions
How many jobs did Canada lose in August 2026?
Canada lost 42,000 jobs in August 2026, according to Statistics Canada’s Labour Force Survey. Employment declined by 0.2 per cent and the employment rate fell to 60.8 per cent. However, employment remained 217,000 higher than it was in August 2025.
What is Canada’s unemployment rate?
Canada’s unemployment rate was 6.4 per cent in August 2026, unchanged from July. The rate had fallen for three consecutive months between May and July. Approximately 1.46 million people were unemployed in August, according to Statistics Canada.
Which industries lost the most jobs in Canada in August?
Business, building and other support services lost 20,000 jobs, while public administration lost 8,800. Natural resources employment declined by 7,700 and utilities lost 5,600 positions. Manufacturing bucked the trend by adding 22,000 jobs during August.
Does Canada still need immigrants if unemployment is rising?
Canada can experience higher overall unemployment while still facing shortages in particular occupations and regions. Immigration policy is increasingly designed to address specific needs rather than general labour shortages. Skilled workers should therefore examine demand for their occupation and the immigration programs targeting their experience.
What does Canada’s labour market mean for immigration candidates?
A softer labour market means prospective immigrants should research employment conditions carefully. Demand varies significantly by occupation and province. Candidates with experience that matches federal or provincial immigration priorities may still have strong opportunities, while those entering occupations with weaker hiring could face greater competition.