Canada Loses 49,600 Payroll Jobs as Vacancies Stay High

Canada's labour market showed signs of weakness in August 2026 as payroll employment declined by 49,600 positions, according to Statistics Canada figures released on October 29.

The 0.3% decrease followed a smaller loss of 15,700 positions in July. Despite these declines, employers reported 507,200 vacant jobs nationwide.

Average weekly earnings also increased to $1,354.55, representing annual growth of 3.7%.

Payroll Employment Falls Across Major Industries

Canada recorded approximately 17.59 million payroll employees in August, down 49,600 from July but still 57,200 higher than a year earlier.

Employment declined in 10 of the country's 20 major industries.

Public administration experienced the largest decrease, losing 22,300 positions. Accommodation and food services followed with 6,800 fewer employees.

Other affected industries included information and cultural services, down 5,000 positions; construction, down 4,500; and retail trade, down 4,400.

Statistics Canada attributed much of the public administration decline to temporary federal staffing changes associated with the 2026 Census.

Job Vacancies Remain Above Half a Million

Despite falling payroll employment, job openings remained relatively stable at 507,200.

August marked the eighth consecutive month without a substantial change in vacancies.

The national job vacancy rate held at 2.8%, while available positions increased by 25,800 compared with August 2025.

There were 2.9 unemployed people for every vacant position, unchanged from July.

These figures suggest that employers continue seeking workers, although hiring needs differ across industries.

Some Industries Continue Reporting Labour Shortages

Several industries reported more vacancies than a year earlier.

Accommodation and food services recorded 10,700 additional openings, while transportation and warehousing added 6,900. Manufacturing reported an increase of 6,100 vacancies.

Finance and insurance also experienced a monthly rise in available positions.

However, health care and social assistance recorded 8,300 fewer vacancies compared with August 2025, continuing a decline that began in January 2024.

Provincial Employment Trends Show Differences

Labour market conditions varied considerably between provinces.

Quebec recorded 8,000 additional job vacancies in August, while Alberta reported an annual increase of 11,400.

Manitoba also experienced growth, with 4,400 more vacancies than a year earlier.

The number of unemployed people per available job declined over the year in Alberta, Manitoba, Ontario and Quebec.

These differences show why national employment figures cannot fully explain opportunities in individual provinces.

What the Figures Mean for Immigration Applicants

The latest numbers present a mixed picture for immigrants and foreign workers considering employment in Canada.

Although payroll employment declined, businesses continued advertising positions across several sectors.

However, the availability of jobs does not automatically indicate eligibility for a Canadian work permit or permanent residence.

Applicants should consider occupation-specific demand, provincial labour conditions and immigration program requirements before making decisions.

Provincial nominee programs may prioritize occupations that address regional workforce needs.

Weekly Earnings Continue to Rise

Average weekly earnings reached $1,354.55 in August, representing a 3.7% increase from the previous year.

Nevertheless, rising average earnings do not necessarily mean every worker received a pay increase. Changes in working hours and workforce composition can also influence the figures.

Canada's latest employment report highlights a labour market where payroll positions are declining even as employers continue searching for workers.