Despite a third-quarter string of worrisome data, the labour market is not seeing widespread deterioration. Canada’s third-quarter labour market data took a surprisingly weak turn. After starting the quarter on a positive note by adding 75,000 jobs in July (per the LFS), back-to-back declines in August (-42,000) and September (-68,000) erased that early summer gain, and brought the total change in employment for 2026 into negative territory (-41,000 since December). Despite the recent string of worrisome data, widespread deterioration in the labour market is not the story here. Public-sector employment has borne the brunt of the job losses, falling by 136,000 since the start of the year, including a 117,000 drop in Q3 alone.
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