Statistics Canada reported that Canada lost 68,000 jobs in September, marking a second consecutive month of job losses and pushing the unemployment rate up to 6.5 %.

Economists had expected the labour market to add about 9,200 jobs in September, so the decline ran counter to those predictions.

The biggest drops came in educational services, health care and social assistance, and manufacturing, while employment in other services such as repair and maintenance slightly offset the losses.

The public sector bore the brunt, shedding 70,000 positions, with Quebec alone losing 49,000 jobs, according to Statistics Canada.

CIBC senior economist Andrew Grantham said the manufacturing slump may reflect the new U.S. tariffs that began in August, and BMO chief economist Doug Porter noted that recent labour‑market data have been unusually volatile.

These unexpected cuts suggest that sector‑specific pressures and trade policy are influencing Canada’s employment picture, a factor the Bank of Canada will watch closely before its next rate decision.