Canada’s economy lost 68,300 jobs in September as reported by Statistics Canada on Friday. Erasing all employment gains recorded so far in 2026, with the unemployment rate moving up to 6.5%.
The drop is significant for the mortgage market, as money markets have pulled back expectations of a Bank of Canada rate hike this month. A 25-basis point increase is no longer expected to happen this month. For variable rate borrowers this is welcome news.
While the average hourly wage rose 2.3 per cent year over year in September, up from 2 percent in August. If wage growth continues to climb this may become a difficult call for the Bank of Canada.
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Source: Statistics Canada
