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- calendar_today November 2, 2026
Canada's labour market continues to evolve, with the most recent official figures showing nuanced shifts in both employment levels and wage growth across the country. These latest insights provide business leaders and policymakers with an updated view of hiring patterns and compensation trends in 2026 and beyond.
Employment Levels and Unemployment Trends
As of August 2026, employment in Canada declined by 42,000 jobs (a 0.2% decrease), bringing the national employment rate to 60.8%, which is similar to the rate at the start of the year. The unemployment rate remained steady at 6.4% in August, following a period of monthly decreases beforehand. On a year-over-year basis, employment was higher by 217,000 (+1.0%), while the layoff rate averaged 0.9%. Employment losses were reported in business, building and other support services, public administration, natural resources, and utilities, while manufacturing saw a notable job increase (+22,000; +1.2%) this month—primarily in Ontario. Over the past year, employment gains have been strongest in health care and social assistance (+129,000; +4.5%), information, culture and recreation (+49,000; +5.9%), and transportation and warehousing (+47,000; +4.4%) (Statistics Canada, Labour Force Survey, August 2026).
Regional Differences in Employment
Regional job trends are varied. Employment declined in Quebec (-19,000; -0.4%) and Ontario (-18,000; -0.2%), but rose in New Brunswick (+2,400; +0.6%). Quebec was the only province with a year-over-year employment decrease (-54,000; -1.2%). In contrast, Ontario posted an annual employment increase (+116,000; +1.4%). Alberta, Saskatchewan, Manitoba, British Columbia, Atlantic provinces, and the territories generally saw stable or slightly changing employment levels over the same period (Statistics Canada, Labour Statistics), (Labour Force Survey, Aug 2026).
Wage Trends: National and Sectoral Highlights
Nationally, average hourly wages increased by 2.0% year-over-year in August 2026, reaching $37.02. This marks a deceleration compared to previous months, with wage growth averaging 4.9% over 2023/24 and 3.4% in 2025. Wage growth was notably slower among employees in the bottom half of the wage distribution (1.1%–1.3%) compared to those in the upper half (2.1%). By industry, annual wage trends for 2025 show that workers in utilities ($55.90/hr), public administration ($46.39/hr), and professional, scientific, and technical services ($48.60/hr) command the highest average wages, while the lowest average hourly wages are in accommodation and food services ($20.98/hr) (Employee wages by industry, annual), (Labour Force Survey, Aug 2026).
Provincial Wage Differences
Provincially, average weekly earnings and wage growth vary. British Columbia had an average weekly wage of $1,369.91, up 5.2% year-over-year; Ontario's average weekly earnings were $1,395.60 (+3.9%); Alberta's reached $1,404.59 (+3.5%). Atlantic provinces showed both lower overall earnings and, in some areas, stronger percentage wage growth, such as New Brunswick at $1,267.77 (+6.0%) (Statistics Canada, Labour Statistics).
Conclusion
Recent months suggest a cooling trend in both employment growth and wage increases following a robust post-pandemic period. Regional and sectoral variations persist, and pressures from policy, global demand, and shifting demographics continue to reshape Canada's labour landscape.
