Actalent Canada Labour Market Report: A Look at Trends in Q3 2026

Employment in Canada increased by 75,100 jobs in July before declining by 41,700 in August and 68,300 in September. As a result, Canada lost a net 34,900 jobs in Q3 2026, following a net increase of 88,300 jobs in Q2.

Canada's labour market lost momentum in Q3 after a strong start to the quarter. Employment growth in July, supported by broad-based hiring and a two-year low in unemployment, pointed to improving conditions. However, job losses in August and September offset those gains as public-sector employment contracted and trade-related uncertainty increased. 

Among the industries Actalent supports, construction, manufacturing, professional, scientific and technical services experienced quarter-over-quarter employment growth. The healthcare and social assistance industry added jobs in July (+8,300) and August (+6,000) before losing 23,100 jobs in September, though there does not appear to be a clear explanation for the decline. Utilities employment also declined in Q3 and is down 6.0% year-over-year, but neither Statistics Canada nor industry sources have identified a specific cause. The decline is occurring alongside major infrastructure investment and reported shortages of engineers, technicians and skilled trades workers, making the trend difficult to interpret as a straightforward reduction in long-term workforce demand.

Average hourly earnings for all employees increased 2.4% year-over-year (Q3 2025 to Q3 2026), down from 3.6% growth in Q2. Wages for workers in professional and technical occupations in natural and applied sciences increased 1.5%, lagging the overall average.

Wage growth has slowed significantly. For comparison, year-over-year growth in average hourly wages averaged 4.9% throughout 2023 and 2024, before falling to an average of 3.4% in 2025, according to Statistics Canada.