The number of employees on Canadian payrolls fell by 49,600 (-0.3%) in August 2026, Statistics Canada reported on October 29, 2026, in its monthly payroll employment, earnings and job vacancies release. That followed a decline of 15,700 in July. Average weekly earnings, however, rose 3.7% from a year earlier. The figures are seasonally adjusted and come from payroll records, which differ from the Labour Force Survey that produces the monthly unemployment rate.
- Payroll employment: -49,600 in August; +57,200 (+0.3%) from August 2025.
- Average weekly earnings: $1,354.55, up 0.5% from July and 3.7% year over year (3.2% in July).
- Job vacancies: 507,200, little changed for an eighth straight month; the vacancy rate was 2.8%.
- Unemployed people per vacancy: 2.9, unchanged from July and down from 3.3 a year earlier.
Where jobs were lost and where pay rose
Payroll employment fell in 10 of 20 sectors. Public administration led the decline (-22,300), with Statistics Canada linking much of the drop in federal employment to temporary 2026 Census staffing winding down. Accommodation and food services, information and cultural industries, construction and retail trade also shed jobs. In construction, payrolls fell by 4,500 in August, with residential building construction down 1,600, after gains from April to July.
Year-over-year earnings growth varied widely by province, according to the earnings table: New Brunswick (+6.0%), British Columbia (+5.2%) and Manitoba (+5.1%) were highest, while Quebec (+1.7%) and Newfoundland and Labrador (+2.3%) were lowest. Ontario was up 3.9% and Alberta 3.5%. Statistics Canada cautions that average earnings growth can reflect changes in the mix of jobs and hours worked, not only pay raises.
What it means for borrowers
Our interpretation: the August data, which predate the September jobs report covered earlier this month, point to a cooling job market but still-rising pay for people who remain employed. For mortgage applicants, lenders qualify on documented income, so a raise can improve debt-service ratios, while a job change or probation period can delay approval. Self-employed people are not counted in this survey.
What to check next
- If your income has changed, rerun your numbers with the GDS and TDS calculator or the mortgage affordability calculator.
- If you work in a sector that is cutting jobs, consider building a cash buffer before taking on a larger payment, and contact your lender early if payments become difficult.
- A licensed mortgage broker can explain how different lenders treat new jobs, overtime and variable income.
Sources
- Statistics Canada, The Daily, Payroll employment, earnings and hours, and job vacancies, August 2026, 2026-10-29. Accessed 2026-10-30.
- Statistics Canada, Table 14-10-0223-01: Employment and average weekly earnings (including overtime) for all employees by province and territory, monthly, seasonally adjusted, 2026-10-29. Accessed 2026-10-30.
General information only, not financial advice. Figures are as published by Statistics Canada on October 29, 2026, for August 2026, and are seasonally adjusted.
