Canada's unemployment rate rose 0.2 percentage points to 6.7% in October 2026 while employment was little changed (-4,700), Statistics Canada reported in its Labour Force Survey on November 6, 2026. The data reflect the reference week of October 11 to 17, before the Bank of Canada raised its policy rate to 2.5% on October 28.
- Unemployment rate: 6.7%, a second straight monthly increase, but 0.2 points lower than a year earlier and below the April 2026 peak of 6.9% (seasonally adjusted).
- Employment rate: 60.5%, down 0.1 points, a third straight monthly decline.
- Average hourly wages: up 2.2% year over year to $37.89 (not seasonally adjusted), after 2.3% growth in September.
- Unemployed: about 1.5 million people, of whom 23.7% had been unemployed for a long period.
Where jobs moved
Private sector employees fell by 53,000 (-0.4%), the first decline since February, while public sector employees rose by 50,000 (+1.1%) after four monthly declines. By industry, wholesale and retail trade lost 29,000 jobs, while construction added 16,000 and educational services 15,000.
Provincially, employment fell in Alberta (-24,000) and Prince Edward Island (-1,300), and rose in British Columbia (+12,000) and Newfoundland and Labrador (+2,900). Ontario's unemployment rate rose 0.3 points to 7.3%, while Quebec's fell 0.3 points to 5.7% as fewer people looked for work. The youth unemployment rate climbed 0.7 points to 13.7%.
More households report financial strain
The survey also found that 29.7% of Canadians aged 15 and older lived in a household that had difficulty meeting its needs for transportation, housing, food, clothing and other necessities over the previous four weeks. That share had trended down from 35.5% in October 2022 to 27.7% in October 2025 before rising 2.0 points over the past year. Among the 15 largest metropolitan areas, it was highest in Oshawa (38.4%), Windsor (36.9%) and Hamilton (35.9%) and lowest in Québec (15.7%).
What it means for mortgage holders
Our interpretation: a flat job market, slowing wage growth and higher borrowing costs pull household budgets in opposite directions. Wages rising 2.2% a year do not go far if a renewal resets a payment at a higher rate, and the October figures were collected before the latest rate increase took effect. The data follow a weak September, covered in our report on the September jobs numbers.
Who is affected and what to do
- Borrowers renewing in the next year can estimate the new payment now with the mortgage renewal calculator and compare offers rather than signing the first renewal letter.
- Households already stretched should speak with their lender early if a payment looks hard to manage; options such as extending the amortization may be available, depending on the lender and the mortgage.
- Buyers with less stable income should check how much they qualify for under current rates, and a mortgage broker can compare lenders' income rules.
Sources
- Statistics Canada, The Daily — Labour Force Survey, October 2026, 2026-11-06. Accessed 2026-11-09.
- Bank of Canada, Bank of Canada raises policy rate to 2.5% (October 28, 2026 interest rate announcement), 2026-10-28. Accessed 2026-11-09.
General information only, not financial advice. Figures are Statistics Canada estimates, seasonally adjusted unless stated, and may be revised.
