Canada’s labour market is showing signs of weakness, with approximately 110,000 jobs lost in August and September 2026, according to Statistics Canada.
Key Employment Highlights
- 110,000 jobs lost: 42,000 in August and 68,000 in September.
- 70,000 public-sector jobs lost in September.
- 48,000 fewer young workers employed, aged 15–24.
- 6.5% national unemployment rate, reflecting a softer labour market.
- Ontario lost 20,000 jobs, with unemployment at 7.0%.
Finding employment has also become harder. The monthly job-finding rate declined to 30.6%, compared with a pre-pandemic average of 36.5%.
What Does This Mean for Mortgage Borrowers?
Buying or Refinancing?
Job losses, reduced working hours or employment changes may affect mortgage qualification. Lenders continue to emphasize stable, verifiable income.
Approaching Mortgage Renewal?
Review your mortgage options early, particularly if your household income has changed.
A word of caution: Avoid missing your monthly or biweekly mortgage payments. Repeated missed payments could jeopardize your mortgage renewal.
Facing cash-flow difficulties? Consider discussing a second mortgage with an experienced mortgage broker while your existing mortgage is still in good standing. Acting early may preserve more financing options, subject to qualification and affordability.
Will Mortgage Rates Fall?
A weakening labour market adds to concerns about Canada’s slowing economy and could influence future Bank of Canada decisions. However, inflation and broader economic conditions will also determine the direction of interest rates.
The Bottom Line
Plan ahead rather than wait. Understanding your mortgage options early can help you make informed decisions during uncertain economic conditions.
Sources: Statistics Canada, Labour Force Survey (September 2026); Better Dwelling (October 9, 2026).
Maurice Kwok ・ 郭澤文
Mortgage Broker, CPA, MBA ・ 粵語 ・ 國語
FSRA-licensed Mortgage Broker (Licence #M13000496)
Sherwood Mortgage Group (FSRA Brokerage Lic.#12176)
Your trusted mortgage guide since 1995.