Canada Loses 4,700 Jobs in October as Unemployment Rises to 6.7%
Canada lost 4,700 jobs in October and the unemployment rate rose to 6.7%, its second increase in a row. Here is what changed, where, and what it means if your job is at risk.
- Figures checked November 6, 2026
- By Krish Paul
- 6 min read
On this page
All figures come from Statistics Canada's Labour Force Survey released November 6, 2026, and from Service Canada's EI pages checked the same day.
The short answer
Employment was little changed in October (-4,700), but the unemployment rate rose 0.2 percentage points to 6.7% as 33,000 more people looked for work. Private sector employees fell by 53,000, the first drop since February, while the public sector added 50,000.
According to Statistics Canada, October follows losses of 68,000 jobs in September and 42,000 in August. The rate is still below the recent peak of 6.9% in April 2026 and 0.2 points lower than a year earlier. If you lose your job, temporary EI rules in force until October 9, 2027 mean no unpaid waiting week and no deduction for severance.
October by the numbers
| Measure | October 2026 | Change |
|---|---|---|
| Employment | 21.1 million | -4,700 (0.0%) |
| Unemployment rate | 6.7% | +0.2 points |
| Employment rate | 60.5% | -0.1 points |
| Youth unemployment rate (15 to 24) | 13.7% | +0.7 points |
| Private sector employees | Down 53,000 | -0.4% |
| Public sector employees | Up 50,000 | +1.1% |
| Average hourly wage | $37.89 | +2.2% from a year ago |
Source: Statistics Canada, Labour Force Survey, October 2026 (reference week October 11 to 17). Monthly changes are seasonally adjusted. The wage change is year over year and not seasonally adjusted.
The public sector gain partly reverses four straight monthly declines that totalled 148,000. Compared with a year ago, public sector employees are still down 70,000, while private sector employees are up 35,000. Self-employment was little changed in the month.
Where jobs were lost and gained
Wholesale and retail trade shed 29,000 jobs in October. That industry is down 113,000 (3.7%) over 12 months, with the losses concentrated in Ontario, Quebec and British Columbia. Construction added 16,000 and educational services added 15,000, which only partly offset a 35,000 drop in education in September.
Younger and older workers took the hit. Youth unemployment rose to 13.7%, and the rate for people 55 and older rose 0.2 points to 5.5%. For core-aged workers (25 to 54), the rate held at 5.8% for men and 5.3% for women.
Unemployment by province
Alberta had the biggest move. Employment there fell by 24,000 and the unemployment rate jumped 0.9 points to 7.3%, erasing a similar gain in September. Ontario's rate rose 0.3 points to 7.3% as more people searched for work, though employment was little changed for a third month.
Quebec went the other way. Its rate fell 0.3 points to 5.7% because fewer people were looking for work, but the province has 106,000 fewer jobs than a year ago. British Columbia added 12,000 jobs after a drop in September. Newfoundland and Labrador still has the highest rate at 8.7%, and Manitoba the lowest at 5.0%.
Elsewhere, Prince Edward Island and New Brunswick were at 7.4% and Nova Scotia at 6.2%. Saskatchewan's rate rose 0.5 points to 5.9%.
Finding a new job is taking longer
The headline rate hides how hard the search has become. Just under one in five (18.9%) people who were unemployed in September had found work by October. That is down from 19.8% a year earlier and well below the 24.6% average for the same months from 2017 to 2019.
Long-term unemployment is rising too. Of the 1.5 million unemployed people, 23.7% had been looking for 27 weeks or more, up from 21.5% a year ago and 17.2% before the pandemic. For people 55 and older, it was 32.7%. Layoffs themselves are not surging: the layoff rate was 0.7%, close to 0.6% a year earlier.
For your budget, the practical message is to plan for a longer gap between jobs than you might expect. If you are building a cushion, our guide to how big your emergency fund should be works through the gap between EI and your usual pay.
What EI would pay you
EI regular benefits pay 55% of your average insurable weekly earnings. In 2026, insurable earnings are capped at $68,900 a year, so the most you can receive is $729 a week. The table shows what that means at different salaries.
| Annual earnings | Weekly pay | Weekly EI | Share of pay replaced |
|---|---|---|---|
| $40,000 | $769.23 | $423.08 | 55.0% |
| $55,000 | $1,057.69 | $581.73 | 55.0% |
| $68,900 | $1,325.00 | $729 (maximum) | 55.0% |
| $90,000 | $1,730.77 | $729 (maximum) | 42.1% |
Hypothetical examples, before tax, assuming the same insurable earnings every week. Service Canada sets your actual rate from your own earnings record.
Above $68,900, every extra dollar of salary adds nothing to your EI. Someone earning $90,000 would replace only about 42% of their gross weekly pay, so higher earners need a bigger cash buffer.
Temporary EI rules now in force
Ottawa has temporary EI measures running through October 9, 2027 that make claims easier:
- No waiting week. The one-week waiting period is waived for all new claims that start between March 30, 2025, and October 9, 2027.
- Separation money is not deducted. For claims or allocations starting in that same window, earnings from separation, which can include severance pay, are not deducted from your benefits.
- Only your last job loss is reviewed. For claims starting between October 11, 2026, and October 9, 2027, Service Canada reviews only your most recent reason for separation.
- Up to 20 extra weeks for long-tenured workers. If your claim starts between June 15, 2025, and June 12, 2027 and you qualify as a long-tenured worker, you can get up to 20 more weeks, to a maximum of 65.
To qualify for regular benefits, you need 420 to 700 hours of insurable employment in your qualifying period, depending on the unemployment rate in your region. You also need to have been without work and without pay for at least 7 consecutive days in the last 52 weeks.
If you think your job is at risk
A few things are worth doing now, while you are still being paid.
- Count your hoursCheck your pay stubs so you know whether you are near the 420 to 700 hours your region requires.
- Build cash firstEI tops out at $729 a week, so extra savings matter most if you earn more than $68,900.
- Review fixed costsLook at subscriptions, insurance and loan payments you could pause or cut quickly.
If you are laid off
- Apply for EI right away. Service Canada says you may lose benefits if you apply more than 4 weeks after your last day of work.
- Do not wait for your record of employment. You can apply before you receive it. Service Canada will need your ROEs from each employer to decide your claim.
- Know how severance is treated. Under the temporary rules, separation earnings are not deducted from EI claims that start by October 9, 2027.
- Rebuild your monthly budget. Plan around your EI amount from the table above, not your old pay.
- Talk to lenders early. If a mortgage, car loan or credit card payment will be hard to make, call before you miss it. Our article on how the rate hike affects borrowers and savers covers what has changed on loan costs.
Frequently asked questions
What was Canada’s unemployment rate in October 2026?
Statistics Canada says the unemployment rate rose 0.2 percentage points to 6.7% in October 2026, up from 6.5% in September. Employment was little changed, with a loss of 4,700 jobs.
How many jobs has Canada lost since August?
Employment fell by 42,000 in August, 68,000 in September and 4,700 in October, a total of 114,700 over three months, according to Statistics Canada’s Labour Force Survey.
Is the EI waiting period still waived?
Yes. Under a temporary measure, the one-week waiting period is waived for all new EI claims that start between March 30, 2025, and October 9, 2027.
What is the maximum EI payment in 2026?
The maximum is $729 a week. EI regular benefits are 55% of your average insurable weekly earnings, and insurable earnings are capped at $68,900 a year in 2026.
Do I need my record of employment before applying for EI?
No. Service Canada says you can apply even if you have not received your record of employment yet, and that you may lose benefits if you wait more than 4 weeks after your last day of work to apply.
- Sources, checked November 6, 2026: Statistics Canada: Labour Force Survey, October 2026 (released 2026-11-06); Statistics Canada: Labour Force Survey, September 2026 (released 2026-10-09); Canada.ca: EI regular benefits, how much you could receive (modified 2026-10-19); Canada.ca: EI regular benefits, eligibility (modified 2026-10-15); Canada.ca: EI regular benefits, apply (modified 2026-10-19); Canada.ca: Temporary EI measures (modified 2026-10-06).
- Method: The three-month job loss adds the published monthly changes (42,000 plus 68,000 plus 4,700). Weekly EI was calculated in Python as 55% of annual earnings divided by 52, capped at $729, and re-checked by capping annual earnings at $68,900 before dividing.
Important: This article is general information, not financial or legal advice. Labour Force Survey estimates are based on a sample and can be revised. Your EI eligibility and amount are decided by Service Canada. See our affiliate disclosure.
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