The unemployment rate in Canada inched up to 6.5% in September 2026 from a two-year low of 6.4% in the previous month, in line with market expectations. The jobless rate remained below its two-year average, when the Canadian economy slowed under the Bank of Canada's aggressive rate-hiking cycle and elevated inflation. The number of unemployed people rose by 15,400 to 1.475 million during the period, even as the labor force participation rate fell by 0.2 percentage points to 64.8%—its lowest level since 1997, excluding the initial shock of the COVID-19 pandemic. The rise in the headline rate coincided with an unexpected 68,300 drop in net employment.