Canada job market, October 2026: more candidates per job and fewer new permits
· 3 min read
Canada’s job market has tilted towards employers. There are more qualified people chasing each opening, wage growth has slowed, and the country is admitting far fewer temporary workers and students than it did two years ago. For employers that means choice. For candidates, especially those still outside Canada, it means being far more targeted.
The numbers at a glance
| Indicator | Latest figure | Source |
|---|---|---|
| Employment change | -68,000 (September 2026) | Statistics Canada, Labour Force Survey |
| Unemployment rate | 6.5% (September 2026) | Statistics Canada |
| Youth unemployment (15–24) | 13.0% (September 2026) | Statistics Canada |
| Average hourly wages | $37.64, up 2.3% on a year earlier | Statistics Canada |
| Job vacancies | 510,200, a rate of 2.8% (Q2 2026) | Statistics Canada |
| Unemployed people per vacancy | 3.0 (Q2 2026) | Statistics Canada |
| Bank of Canada policy rate | 2.25% (held 2 September 2026) | Bank of Canada |
| Permanent resident target | 380,000 a year, 2026 to 2028 | IRCC Immigration Levels Plan |
| New temporary residents in 2026 | 385,000, including 230,000 workers and 155,000 students | IRCC Immigration Levels Plan |
Where the jobs went
September’s loss of 68,000 jobs was concentrated in educational services, health care and social assistance, and manufacturing. Vacancies have barely moved for most of the year, and with three unemployed people for every opening, employers are seeing more applications per role than at any point in recent years. Young people feel this most: youth unemployment is at 13.0%.
Immigration targets are lower
Under the 2026–2028 Immigration Levels Plan, Canada aims for 380,000 new permanent residents a year and about 385,000 new temporary residents in 2026, down sharply from 673,650 in the previous plan. The number of new study permits planned has roughly halved. The plan also includes one-time measures to move some people already in Canada, including up to 33,000 work permit holders, to permanent residence. A new plan for 2027–2029 is due this autumn.
What this means if you are hiring in Canada
- You can be selective, but not slow. Strong candidates still receive several offers. A clear process and quick decisions matter more than ever.
- Look to talent already in Canada. Internationally trained professionals who already hold work permits or permanent residence are a large and often overlooked pool.
- Keep wage offers realistic. Wage growth of 2.3% gives you room, but undercutting the market still costs you the best people.
What this means if you are looking for work
- In Canada already? Tailor every application, get your credentials recognised in your field, and use the one-time permanent residence pathways if you are eligible.
- Outside Canada? With fewer temporary permits, focus on employers in sectors that still struggle to hire and on programmes you clearly qualify for. Treat any offer of a “guaranteed” job or visa for a fee as a warning sign.
- Young job seekers: internships, co-op placements and Canadian references carry real weight in a crowded market.
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Sources
- Statistics Canada, Labour Force Survey, September 2026
- Statistics Canada, Job vacancies, second quarter 2026
- Bank of Canada, interest rate announcement, 2 September 2026
- IRCC, 2026–2028 Immigration Levels Plan
Figures are the latest available on 20 October 2026. The Bank of Canada’s next decision is on 28 October 2026, and the 2027–2029 Levels Plan is expected this autumn; we will update this page when they are published. This article is general information, not immigration advice.
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