Canada’s economy lost 68,000 jobs in September, erasing all employment gains recorded so far in 2026 and raising concerns about the labour market as layoffs begin at the Stelco steel plant in Hamilton, Ont. Statistics Canada’s Labour Force Survey released Friday showed employment fell well short of expectations, with economists having forecast modest gains for the month. Canadians aged 15 to 24 and women aged 25 to 54 were among the hardest hit. Losses were driven largely by declines in the public sector. The report comes as Stelco begins issuing layoff notices to workers at its Hamilton facility, following the company’s announcement last week that it could cut up to 500 jobs, citing the ongoing trade war. The potential cuts underscore the uncertainty facing workers as Canada’s trade relationship with the United States continues to affect key industries. For workers like Mike Watts, the uncertainty is already becoming reality. “What’s my future? That’s all I’m thinking about. What will I do next?” Watts said. Friday was Watts’ last day at the steelmaker. He said he received his layoff notice from his supervisors. “I just received my envelope. A couple of foremen came by and handed it to me, wished me luck,” he said. Conservative Leader Pierre Poilievre addressed the impact on Canada’s steel sector during a visit to Burlington, Ont., on Friday. “These workers did everything right, and my message to them is to keep the hope and keep the faith because we will keep fighting for you,” Poilievre said. Economists warn of further pressure on jobs The September jobs report adds to a difficult stretch for Canada’s labour market. Sal Guatieri, director and senior economist at BMO, said the numbers were “quite disappointing.” “It brings total job losses in the last two months to 110,000, more than reversing the two prior months where we saw pretty significant job increases,” Guatieri added. The report also comes days after Prime Minister Mark Carney boasted about his government’s economic record. “Jobs are up, the economy is up, we’re moving forward,” Carney said Wednesday during question period in the House of Commons. Poilievre criticized Carney’s assessment during his Friday visit. “Prime Minister Carney is out of touch, while you’re out of money and increasingly out of a job,” he said. Economists suggest the labour market has yet to feel the full effects of the trade war, particularly in industries most exposed to tariffs and other trade disruptions. Stelco layoffs could be reversed if trade deal reached Stelco’s U.S. parent company, Cleveland-Cliffs, has said affected workers could be called back if a trade deal is reached. Watts questioned the company’s position, saying he viewed the possibility of reinstatement as pressure on workers amid the trade war. “I take it as Cleveland-Cliffs is using this as blackmail. That’s how I see it,” he said. Federal Industry Minister Mélanie Joly has threatened legal action against Cleveland-Cliffs if it fails to honour commitments made to the Canadian market when it acquired Stelco in 2024. “The Government of Canada expects Cleveland-Cliffs to honour the commitments it made when it acquired Stelco, including those related to maintaining jobs,” the minister’s office said in a statement to CTV News Friday. Joly has given the company an evening deadline of Oct. 13 evening to present the government with a plan to meet its obligations.
